The folks up in Redmond have killed the studio that once produced Flight Simulator for Microsoft. In a hush, hush shutdown of ACES game studio, Microsoft has given the employees of the studio pink slips. In a news article about the closing, it states that:

Redmond, Washington-based ACES Studio, the Microsoft-owned internal group behind the venerable Microsoft Flight Simulator series, has been heavily affected by Microsoft’s ongoing job cuts.

Development sources have told Gamasutra that a large portion of the dev house’s staff has been let go – with multiple reports indicating that the entire Flight Simulator team has been axed.

Rumors have been appearing around the Internet suggesting that Microsoft is cutting back. It was also a surprise when Microsoft sold off their interests in Comcast. It would appear that even the mighty Windows supplier is seeing the outcome of the economic down turn.