
On January 23, 2009, Microsoft announced that it was permanently closing Aces Game Studios, the internal development studio responsible for the Microsoft Flight Simulator series and the development of Microsoft Train Simulator 2. A post on 'The Little Wheel Goes in Back' blog, written by one of the developers, on Augsuggested the working title was 'Train Simulator 2'. The game would have used the Microsoft Flight Simulator X graphics engine and it was planned to be compatible with both Windows Vista and Windows XP. This time the game was being made in-house by Aces Game Studio ( Microsoft Game Studios) known for its long line of Microsoft Flight Simulators, as a part of the " Games for Windows" initiative.

On January 19, 2007, Microsoft announced the relaunch of the Microsoft Train Simulator project.
