The news is here.

Can't say that I'm shocked. I'd still reiterate my suggestion to release the source code for Max rather than just killing it entirely. Given the project, I find it hard to believe that there's much in there that could be considered "secret."

I know it's tough to have your project/product killed at Microsoft (been there, done that), so I hope that everyone involved on the Max team can find new positions and have an easy transitions to a new team.