It's not a surprise, as MSN Groups was one of the last vestiges of Microsoft's Web services strategy pre-Windows Live.  
MSN Groups will be closing on February 21, 2009. It'll be replaced with a new service, Windows Live Groups, which debuts on November 17.
 Here's the catch: The LiveSide post indicates MSN Groups will not be migrating to Windows Live Groups; the new Windows Live service will be different enough so that the transition wouldn't be a clean one. Instead, the LiveSide post says that existing MSN Groups will transition to community site Multiply--in other words, Multiply is effectively acquiring MSN Groups from Microsoft.
  
 Microsoft is planning to release a new service called Windows Live Groups in November, and apparently doesn’t want to compete with itself.
  
 Just wanted you all to know.
 Tudorgalusa