While we are having a tough time tracking all of the layoffs in the software world as of late, the news that Microsoft had decided to ax the entire ACES studio that was responsible for the Microsoft Flight Simulator series made our hearts sink. If you have been around computers long enough, you are likely to remember versions of Microsoft’s Flight Simulator products; and perhaps it is the reason that you got bitten by the computer bug in the first place.

According to our sources, all but six full-time members of the ACES team were let go, which now leads us to think that the future of the Flight Simulator X technology as well as any future sequels to the game are also in doubt. While Microsoft still owns the IP, it must feel that at this time there just is not a market for a new Flight Simulator title, even though our moles tell us that one was in development.

In addition to Flight Simulator, the ACES studio was also handling the development of Microsoft Train Simulator and it was well known that Train Simulator 2 was in development at ACES. With over 1,400 jobs cut at the ACES studio it is very doubtful that either project will see the light of day anytime soon.

As for Microsoft’s reasoning for cutting the ACES studio, our sources tell us that the decision had more to do with sagging sales in the PC platform in general, as well as the need to continue pouring money into entertainment software development areas such as Xbox Live, which are currently generating more revenue for the company.

It is unlikely that we have seen the end of the Flight Simulator or Train Simulator franchises, but it could be some time before Microsoft will elect to blow the dust off them and start development moving again. It could be, however, that Microsoft might choose to farm the IP out and have an independent studio outside Microsoft work on them. Only time will tell what will happen next for both franchises, but in the meantime we can (at least for the time being) wave goodbye to a good friend that has been a cornerstone in entertainment software on the PC platform for years.