Visit pretty much any “hardcore” flight simulator discussion group and you’ll hear their cries, XBOX IS KILLING FLIGHT SIMULATOR! Be it supposed visual downgrades, the nature of the Xbox as a closed platform, the sole availability of add-ons through the Microsoft Marketplace, or just the idea that a serious business like flight simulator has no place on a home console, you’ll find no shortage of lukewarm (and often incorrect) takes on how Xbox has done significant harm to the flight sim hobby.
But, just a little more than decade ago, if you said that Xbox killed flight simming, you’d arguably have been right. Of all the numerous indignities suffered by Microsoft’s storied flight simulator franchise, none compare to the events of January 22nd 2009; the day Microsoft Flight Simulator died.
Welcome to Simcident Report, where we take a look at noteworthy, dramatic, and historic events in flight simming. Today, we bring you the story of the rise and fall of Aces Game Studio, and chronicle Microsoft Flight Simulator’s fall from the crown jewel of Microsoft Gaming, to an expendable afterthought.
Table of Contents
The Father of Home Flight Simulation
Microsoft Flight Simulator’s roots go back to the late 1970s and a passionate pilot and electrical engineering graduate student at the University of Illinois named Bruce Artwick. In his 1975 master’s thesis, “A versatile computer-generated dynamic flight display,” Artwick presented a model of an aircraft’s flight displayed on a computer screen. This demonstrated that a 16-bit minicomputer with minimal graphics processing capabilities was capable of performing the required arithmetic to simulate an aircraft’s real-time flight.
In 1977, Artwick, along with his business partner Stu Moment, would found Sublogic, and in 1979 release FS1 Flight Simulator for the Apple II. The program was a critical and commercial success, selling 30,000 copies by June 1982. The program caught the attention of a small Redmond Washington-based startup known as Microsoft, who contacted Artwick about the possibility of creating a “definitive game” for the upcoming IBM PC, which would demonstrate the 16-bit platform’s superiority over 8-bit competitors such as the Apple II. Microsoft reportedly entered a bidding war with IBM over the right to license Flight Simulator for the PC. Artwick accepted Microsoft’s bid, in his words, because of the startup’s “nice small company atmosphere and the genuine interest of Vern Raburn, head of the consumer products division.”
The partnership proved successful and resulted in the 1982 release of Microsoft Flight Simulator 1.0. The game sold well and became a de facto standard among PC Clone manufacturers to benchmark the PC compatibility of their systems – basically, if it could run Microsoft Flight Simulator, it was a real PC. The release was followed by Microsoft Flight Simulator 2.0 in 1984 and Microsoft Flight Simulator 3.0 in 1988.
After the release of FS3.0, Artwick left Sublogic to create his own company, Bruce Artwick Organization Limited (BAO Ltd.) BAO continued the Microsoft partnership with Microsoft Flight Simulator 4.0 in 1989 and 5.0 in 1993. In 1995, Microsoft acquired BAO Ltd, officially taking ownership of the Flight Simulator series and bringing the full development of the game in house for the first time. Most of BAO’s 30 employees were relocated from Champaign, Illinois to Microsoft’s Consumer Product Devision in Redmond, Washington, taking on the new name, Microsoft Simulation Group.
The Crown Jewel
The acquisition of BAO came as part of Microsoft’s larger push for Microsoft Windows be taken more seriously as a gaming platform. In the early 90s, Windows had a bit of an image problem when it came to gaming. While PC gaming was quickly gaining popularity, most games were being developed for DOS, with game developers nearly across the board complaining that Windows consumed too many resources and was too difficult to develop for.
In an attempt to attract game developers to Windows, Microsoft created DirectX, a series of programming APIs that bypassed Windows and allowed for direct hardware access in a manner more similar to DOS. But creating DirectX was one thing; convincing developers to use it was another.
At E3 in May 1996, Microsoft announced it was publishing several exclusive titles for Windows that would use the new DirectX APIs. Among the list was Microsoft Flight Simulator for Windows 95. FS95 featured heavily in Microsoft’s marketing, which touted Flight Simulator as “the world’s most popular PC entertainment title, with more than 1.5 million copies sold.” Although FS95 was generally well received, critics pointed out that the game was essentially just a Windows port of FS5.1, itself an incremental upgrade of FS5, which at this point was over three years old. With new offerings coming to the civil flight sim genre, such as Looking Glass Studios’ Flight Unlimited, Sierra’s ProPilot, Terminal Reality’s Fly!, and Austin Myer’s X-Plane, it was clear that Microsoft would need to make a big splash with the next installment of Flight Simulator if it wished to remain relevant and truly demonstrate its commitment to Windows gaming.
Microsoft would move to position Flight Simulator as a sort of technology demonstrator for the PC, starting with the release of Microsoft Flight Simulator 98 in 1997. The new game was a massive improvement over its predecessor, bringing Direct3D support, which allowed for enhanced cockpits, support for the Microsoft Sidewinder Force Feedback Pro, and improved online multiplayer functionality. Reviews for the game consistently praised the level of realism and graphical fidelity. Microsoft Flight Simulator was becoming something of a crown jewel for Microsoft Gaming in the mid to late 90s, showcasing what was possible for gaming on Windows. With subsequent installments, Microsoft would continue pushing technology forward, with Flight Simulator 2000 introducing 3D elevation via terrain mesh, precipitation effects, and over 20,000 airports worldwide. But Flight Simulator’s time in the spotlight wouldn’t last. Deep within Microsoft, a rogue team was gathering to work on a project that would upend the gaming world.
Think Inside the Box
On March 2nd, 1999, Sony officially announced the PlayStation 2, pitching the idea to consumers of an all-encompassing entertainment system that combined a CD player, a DVD player, and a home console into one device—a device that, according to Sony, could one day replace the home PC. Microsoft saw Sony’s announcement as a direct threat to its core business and scrambled to form a response. To Microsoft leadership, the solution was clear. They needed a home console of their own.
Members of Microsoft’s DirectX team presented a vision of a device that would be built using PC components and run a version of DirectX. The idea was that by making the console as PC-like as possible, Microsoft could more easily attract developers to the platform. A prototype of the console, now known as Xbox, was first shown at the Game Developers Conference on March 10th, 2000. Microsoft was quick to quell rumors that it was giving up on PC gaming, with Microsoft Games director of marketing Don Coyner stating that “The PC and Xbox are complementary devices. Each has a very distinct audience. PC games are more cerebral, while console games are more visceral. If you look at the top 10 game lists for these two platforms, you’ll see that they don’t really match up.”
Despite the reassurances from Microsoft, commentators in the flight sim world such as Mike Clark of The Mag FSNews (no relation) decried that with the increasing focus by Microsoft on a much larger and potentially more lucrative “gaming” market, flight sim was at risk of being left behind. Clark reasoned that while flight sim (theoretically) coming to consoles could solve a lot of the performance and compatibility woes that plagued simming on the PC, the nature of the console as a closed platform would essentially mean the death of 3rd party add-ons.
However, it appeared the majority of simmers did not share these concerns. An October 2000 poll conducted by the magazine found that 53% of the over 44,000 respondents believed that the Xbox would revolutionize flight simming. Despite the optimism, questions continued to swirl around the future of flight simulation on the PC, mainly due to the lack of any confirmation one way or another on the availability of Microsoft Flight Simulator for Xbox. For simmers, the question was obvious: would Flight Simulator remain the crown jewel of Microsoft Gaming, or would it be cast into some metaphorical forgotten corner of the Microsoft organization?
The Literal Forgotten Corner of Microsoft’s E3 Booth
Simmers waited for any news of Flight Simulator being ported to Xbox, but no official word ever came from Microsoft. The closest thing to a confirmation that flight sim wouldn’t come to Xbox would occur at The 2000 Flyer Exhibition in London. Steve McGill, product manager for Microsoft UK, stated that while Xbox was a great hardware platform for simulation, Microsoft had decided to keep the focus on pure “gaming” titles. He added that more arcade-focused flight games, such as Crimson Skies, would more likely find their way to the Xbox platform.
More worrying news for simmers came when the Microsoft Simulation Group was absorbed by Microsoft Game Studios, and renamed Aces Game Studio. The studio would go on not to port Flight Simulator to Xbox but assist in the development of Blood Wake as a launch title for Xbox. If there was a glimmer of hope for the flight sim world that it would not be completely overshadowed by Xbox, E3 2001 almost certainly extinguished it. Microsoft’s booth and press materials surrounding the event focused heavily on Xbox, with titles such as Halo and Dead or Alive 3 taking center stage. Despite E3 2001 being the first public showing of Microsoft Flight Simulator 2002, the announcement was relegated to a simple press release which featured the game alongside Zoo Tycoon with the title Lions, Tigers and Bears – or Fly? Microsoft Introduces “Flight Simulator 2002” and “Zoo Tycoon” at E3 2001.
AVSIM’s Maury Pratt reported mixed feelings in his coverage of E3 2001, stating that FS2002 had been relegated to a small corner of Microsoft’s booth, which was otherwise largely dominated by Xbox displays. However, despite the relative lack of excitement from the mainstream gaming world, FS2002 boasted a vast number of improvements over its predecessor, introducing autogen scenery, fully modeled 3D virtual cockpits, AI ATC, and a greatly improved frame rate.
When it was released in October 2001, FS2002 received positive reviews and sold over 200,000 copies across the US and the UK by the end of the year. However, this number sounds considerably less impressive when you compare it to Halo for Xbox, which reportedly sold 1 million copies by April 2002.
Even if Microsoft hadn’t completely abandoned flight sim, it was clear where the money was and that the Halo, and by extension, Xbox, was Microsoft Gaming’s new golden child. The trend of Flight Simulator being overshadowed by Halo would continue into E3 2003, where Microsoft would demo Halo 2 gameplay for the first time to favorable and widespread media coverage. Flight Simulator would once again be relegated to a simple press release, which this time didn’t even mention the upcoming Flight Simulator 2004 in its title: Microsoft Game Studios Highlights “Halo,” “Mythica” for PC at E3.
Image Credit: Halo Alpha
Still, the simming world pressed on. FS2004 would once again be released to positive reviews with consistent praise given to the improvements to the live weather system, built-in AI traffic, and ATC.
For Microsoft, Xbox was king, and just like any king, a new heir to the throne was needed. The Xbox 360 was announced in May 2005 and went on sale that November, becoming an almost immediate sales success and propelling Microsoft’s online service, Xbox Live, into the gaming mainstream.
However, it wasn’t all good news for Xbox. In early 2006, shortly after the launch of Xbox 360, reports began to trickle in of a strange hardware failure that would brick Xbox 360 consoles. The console’s front panel would illuminate three red segments, indicating a “general hardware failure.” Early in the console’s lifecycle, Microsoft considered the failure rate to be between 2-3%, which was within the normal range for most consumer electronics. By 2007, it was clear that these failures were not isolated reports, with various estimates placing the rate of Xbox 360 hardware failure between 23-54% of all consoles. The cost of servicing these failed consoles was reported to exceed $1.15 billion, making it one of the costliest consumer warranty repairs in history.
Microsoft clearly saw tremendous value in the Xbox and Xbox Live brands and was willing to dump incredible amounts of money to keep them going. But what about PC gaming? Had Microsoft finally forgotten its roots? Or was there a way for PC, and by extension, Flight Simulator, to ride the wave of the Xbox’s success?
A New Hope for PC Gaming (Kinda?)
A new hope for the future of Microsoft’s support of Flight Simulator and PC gaming in general came at CES in January 2006, with the announcement of Windows Vista and the new Games for Windows Live service. The service was billed as the future of PC gaming, bringing features of Microsoft’s Xbox Live service, such as friends, gamertags, and achievements, to Windows. As part of the lineup of new titles, Microsoft would publicly demo Microsoft Flight Simulator X for the first time.
Now, to say that Windows Vista and Games for Windows Live would become controversial topics in the PC gaming industry would be an understatement. But at least for simmers, Microsoft Flight Simulator X would go on to become the most successful launch of the franchise to date, selling over 1 million copies in the US alone by 2008.
The game would ultimately receive somewhat mixed reception from fans and critics, with praise given to the level of realism and graphical fidelity along with the more accessible nature of the built in scripted missions. However, most reviews noted significant frame rate issues and numerous bugs which hindered the experience for simmers on average PC hardware. Many simmers would opt to forgo FSX in favor of the much more stable FS2004. The next installment, FSX: Acceleration, a major first-party expansion pack for FSX, was launched on October 23rd, 2007, to positive reviews. It incorporated a number of patches and bug fixes that stabilized FSX’s performance for the majority of users. That November, Microsoft took its commitment to the development of Flight Simulator a step further by announcing the Microsoft Enterprise Simulation Platform (ESP). Built on the Microsoft Flight Simulator engine, ESP was designed for enterprise customers to develop high-fidelity virtual simulations of real-world environments for training purposes.
A new status quo in the gaming world may have been taking hold, but for PC gaming, it wasn’t all bad news. Xbox 360 might have been the golden child, but the financial success of FSX and Acceleration and the introduction of ESP proved that Microsoft was still king of flight sim and was interested in pushing the genre to new heights. If anything, Microsoft’s shifting priorities showed the simming world that while Xbox 360 was for kids and gamers, the company still felt that the PC, FSX, and ESP were for serious people doing serious things.
Overall, the future of simming looked bright. It seemed that nothing, short of, say, a cataclysmic near-complete collapse of the global economy and financial system, could possibly stop flight sim. But what were the chances of that happening?
The Near Complete Collapse of the Global Economy and Financial System
While gamers bickered about PCs and consoles, people living in the real world began to notice concerning signs of economic trouble. A decade-long boom in the US housing market finally showed signs of slowing down. Years of risky mortgage lending practices had fueled a speculative bubble that was on the verge of bursting. Unprecedented levels of defaults, coupled with toxic financial products built around these mortgages and lax regulatory oversight, culminated in a domino effect that reverberated throughout global financial markets.
On September 7, 2008, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac, two companies chartered by Congress to support the U.S. home finance system, were being placed into conservatorship in the face of a liquidity crisis. Just a week later, Merrill Lynch, once a Wall Street powerhouse, was forced into a hasty sale to Bank of America, while Lehman Brothers, one of the largest investment banks in the United States, filed for bankruptcy. Just days later, Washington Mutual, one of the largest savings and loan associations in the country, was seized by the United States Government and placed into receivership, making it at the time the largest bank failure in American history.
Stock markets were plunged into turmoil as panic selling gripped exchanges around the world, leading to billions in losses. The Dow Jones experienced its largest single-day drop since the days following the September 11 attacks. Confidence in the financial system evaporated, leading to a freeze in interbank lending and the failure of credit markets. Governments scrambled to contain the crisis, injecting liquidity into faltering banks and implementing emergency measures to shore up confidence. Unemployment soared, reaching levels not seen in decades, as companies scrambled to reduce costs in the face of restricted access to capital. Consumer spending plummeted, affecting retail sectors worldwide and leading to bailouts for companies like General Motors and Chrysler. Global trade and manufacturing were hit hard as demand decreased, while small businesses folded and were unable to access credit.
Among the chaos, software giant Microsoft, facing declining profits driven by the failing economy and various faltering projects such as the Zune and the over billion dollar loss from the Xbox 360’s Red Ring of Death, announced in an email it would cut 5000 jobs across the organization. As a result of these cuts, on January 22nd, 2009, Microsoft closed Aces Game Studio, ending 25 years of development of Microsoft Flight Simulator.
Aces Shot Down
In an announcement on the series’ official website, the company stated, “This was not a reflection of the quality of the products Aces has developed, the sales performance of the games, or the quality of the team at Aces. This difficult decision was made to align Microsoft’s resources with our strategic priorities. In a January 26th blog post, former Aces employee Phil Taylor stated that the job cuts at Microsoft had simply come at the wrong time for Aces, which was falling behind on the development of Train Simulator 2, ESP, and Flight Simulator 11. What had just a few months prior seemed like a potential new golden age for simmers was suddenly thrust into turmoil, with Microsoft remaining quiet on the franchise’s future.
Paul Lange, the lead designer of FS11, posted in a forum thread on Sim Outhouse that a group of Aces developers had even approached Microsoft about purchasing the Flight Simulator IP and codebase for future development by an independent team. However, they were told that “MS believes in the IP and would not be willing to sell it.”
In a statement to IGN, Microsoft nebulously promised to keep the flight genre alive, saying, “We are committed to the Flight Simulator franchise, which has proven to be a successful PC-based game for the last 27 years. You should expect us to continue to invest in enabling great LIVE experiences on Windows, including flying games, but we have nothing specific to announce at this time.” Microsoft officially remained quiet on the exact status of ESP, saying in a statement, “Microsoft is currently exploring options for the future of ESP and will announce details at the appropriate time.” However, reports from developers in Microsoft’s forums indicated that the platform would no longer be available after March 31st and would no longer be supported by Microsoft after existing contracts expired in five years.
Microsoft’s sudden exit from the flight sim market struck a major blow to an already struggling hobby. Several major players in the civil flight sim space had already exited in the early to mid-2000s, with Flight Unlimited and Fly! having both long ceased development. Reactions of simmers across the forums ranged from resigned melancholy and pointless desperation to full-on existential crisis.
With Microsoft Flight Simulator gone, X-Plane was seemingly the last viable option on the market for serious civil flight simmers, aside from niche open-source simulators like YSFlight and FlightGear. FSX users and third-party developers were faced with a choice to either stay on an effectively dead platform or migrate away. X-Plane was quick to capitalize on Microsoft’s market exit, holding a special sale and publishing guides for add-on developers using both ESP and FSX.
This was the beginning of what I call the dark age of simming.
The Future of Simming
In the end, the story of Microsoft Flight Simulator, in many ways, IS the story of PC Gaming as a whole. It was born in a research lab and pushed out to consumers to demonstrate what home computers were truly capable of. It expanded and built up to unbelievable heights, but it was suddenly sidelined by the arrival of newer, more advanced home consoles.
But, Microsoft Flight Simulator’s story didn’t end in 2009… Not everyone was content to move to X-Plane and carry on. Over the course of the next decade, many attempts would be made to revive FSX, some more successful than others.
…but that’s a story for our next installment, Simcident Report: PMDG Flight Simulator? P3D? Steam Edition? Flight Sim World? Inside The Years Long Battle to Reanimate FSX’s Festering Corpse Into Some Frankenstein’s Monster of A Flight Sim.
…I’m going to work on that title.
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