Microsoft Train Simulator 2

Microsoft Train Simulator 2 (MSTS 2) was a train simulator that was being developed by Microsoft Game Studios until being officially postponed for an indefinite period. MSTS 2 was first announced on January 19, 2007 and originally scheduled for release in the last quarter of 2009. The program's lead designer, Rick Selby, also announced in early 2009 that it was to be compatible with Windows XP, Windows Vista and Windows 7. It was to be the successor to Microsoft Train Simulator and was being developed by ACES Studio (Microsoft Game Studios), known for their long line of Microsoft Flight Simulator games, as a part of the "Games for Windows" initiative. The simulation was to use a modified Microsoft Flight Simulator X software platform. However, with the closure of Microsoft's ACES Studios on January 23, 2009, development of this simulator was immediately halted.

First attempt: 2003–2004
An earlier attempt at building a second version to Train Simulator was originally announced during the Spring of 2003. Unlike the latest project, this one was going to be based upon the existing platform engine as its predecessor was & developed by Kuju Entertainment, whom were the original creators, once again. On May 15, 2003, a preview of the title was shown at the E3 Entertainment Expo in Los Angeles to demonstrate much of the new work, such as its new routes, rolling stock, and other features including animated people & functioning turntables.

However, only three months later into the Summer on August 18, 2003, Kuju had handed the project over to Microsoft Game Studios and they would eventually halt the entire development by Spring of 2004 as the following statement from Microsoft confirmed:

Much of the former development team from Kuju later established Rail Simulator in order to continue development of their own simulation platform. Its first version was later released in October 2007.

Development
The re-launch attempt at Microsoft's second version of the "Train Simulator" project was officially announced on January 19, 2007. This time around the simulation was instead being made in-house by Microsoft's ACES Studio, which was most known for its successful Microsoft Flight Simulator series line, as a part of the "Games for Windows" initiative. The simulation leveraged most of the existing core components of Microsoft Flight Simulator X's platform, thus providing an entire earth model in which to play from, and was planned to be compatible with both Windows Vista and Windows XP. A post on the 'The Little Wheel Goes in Back' blog, written by one of the developers, confirmed the working title was 'Train Simulator 2'.

Microsoft's first demonstration of Train Simulator 2 occurred on August 25, 2007 at the Games Convention in Leipzig, Germany and released an official press kit which included several in-game visual prototype images, asset renders, and two videos. One of these videos presents a brief demonstration of the simulation's ability to model the entire planet's track corridors, reproducing a similar concept in Microsoft's Flight Simulator series, with global rail network data for anyone to operate their trains around freely without limits. The data would've also been available to route builders for modification of any kind to suit their modeling needs anywhere in the world of their choosing, which would more or less require simple cosmetic details & object placement to depict accuracy as opposed to starting an entire route from scratch.

Despite having the name in common with its predecessor, backwards compatibility with the first version of Train Simulator would not have been possible due to its completely different base platform used for development and programming designs between the two versions. The original Microsoft Train Simulator uses routes based on individual levels which are loaded separately within the application, where as this version would have introduced the entire world as a single game playing area where railroad corridors would have been based on their actual real-world locations just as in Flight Simulator.

Routes
In addition to the entire global earth model from which FSX was based, Train Simulator 2 was also going to feature four high-detail routes. They decided they would have only 4 routes including the following lines, along with their respective railroad carriers:

ACES Studio Closure
On January 23, 2009, Microsoft announced that it was permanently closing its ACES Game Studios, the internal development studio responsible for both Microsoft Flight Simulator and Microsoft Train Simulator. As a result, all future development on Train Simulator 2 (which was just entering the final stages of development at the time of closure) was immediately halted, marking the second time that this project was terminated. A week later, Microsoft issued the following official announcement from Train Simulator Insider:

However, Kuju game studios have continued to make train simulation products such as Rail Simulator and Railworks which are technically MSTS 2 games only under different publishers such as EA games. Both have more routes, trains, scenery, and graphics than the original MSTS.

While Microsoft states that they are committed to both the Flight Simulator and Train Simulator brands, it is currently unknown if the Train Simulator 2 project will ever be resurrected and completed sometime in the future. Information regarding the product can still be found on Microsoft's official Train Simulator website.

On October 12, 2009, several members of the former ACES Studio team announced the launch of a new simulations-based development studio named Cascade Game Foundry. Further details relating to their first project are to be announced.