Microsoft has confirmed the closure of Aces Game Studio, the internal developers behind one of the company's mainstays Microsoft Flight Simulator, as part of a wider move to cut jobs and costs.
Kelda Rericha of Edelman, Microsoft's PR firm, said that the decision was made "to align our people against our highest priorities."
"We are committed to the Flight Simulator franchise which has proven to be a successful PC based game for the last 27 years," Rericha told IGN.
"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."
In addition to this, Venture Beat is reporting on rumours that around 30 per cent of the company's videogame testers have also been cut and that the company's game group is expected to "undergo a management restructuring".