
Francois from simFlight.com is certainly not giving up as far as Microsoft Flight Simulator goes. He has just published an open letter to Phil Spencer at Microsoft, asking him to reconsider the decision to close Aces Studio.

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.
Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.
To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Thanks to the slip-up of an artist working on the title, we now have more evidence that a new Injustice game is in the works.

Spiders: "We're going to cut straight to the chase so you're not left wondering: After a long period without clear answers, we have received confirmation that Spiders is being liquidated.
What does it mean? This means the company as a whole no longer exists. We'll cease our functions immediately. The planned DLC will release via Nacon, and then-- well, that's it.
We're sorry that it's come to this and would like to thank each and every one of you for your support over the years.
If you have any questions or run into issues with your games, please contact Nacon directly as we'll no longer be able to reply."
Stupidest thing Microsoft Game Studios have ever done, by far. Hope this works, but know it won't.
Good intentions although I doubt it will work, the license was already given to a new developer already.
At first glance it almost seems like MS want to pull away from the gaming side of things with so many studio's being closed but then they do still own all the important IP's like Flight Simulator, Halo, Project Gotham Racing etc so perhaps the bean counters figure its cheaper to hire a team in to further those titles than run a studio full time.
What game studios ?...
Microsoft is closing studios to reduce redundancy and overhead. They had many studios that did similar things, and rather than having all the talent together they were often split up in their own managerial structures.
It was a problem through the whole company that they are working on fixing before reopening or making new studios.
They also aren't canning the franchise, they just closed the studio with plans to continue flight simulator at a diff studio.