There are some rumbling on the software factories from MS.
It has been nearly 4 years since Jack Greenfield articulated Microsoft Software factories vision. He talked about state of software engineering in his famous book. We have got bunch of PnP guidance packages(http://msdn2.microsoft.com/hi-in/practices/bb969097(en-us).aspx - scroll to then end of the page) that adresses solution domain rather than the problem domain. To some people, these guidance packages have given a different understanding of software factories rather than what was articulated in the vision. Software factories have become synonymous with code generation. These PnP software factories give good guidance and productivity gains but they are not full vision of software factories.
Every one knows that as of now MS has not released tools to realize all the four pillars ( Software Product Lines, Domain Specific Models, Context Guidance and Architecture Frameworks) of software factory vision. Currently, DSL tools like GME from Vanderbilt university have better features than DSL tools from MS.
Complete vision of software factory as articulated few years back is not realized yet but on the other side MS is coming up with Software factory tools support in next version of Visual Studio "Rosario". Check the DSL tools roadmap . Check the updates that are present in Rosario CTP's. These new tools in Rosario represent a definitely a way forward (assuming that they will make it to final release!) but the question is would they give the kind of benefits envisaged in the software factories vision? Only time will tell.
For latest happenings, refer to software factory community at http://sf.devrevolution.com/