On May 7, 2003, Microsoft announced that it would be developing a sequel called "Microsoft Train Simulator 2" and it was first demoed to the public at E3 on May 15. Seemingly its main improvements were the addition of people to the game (e.g. passengers waiting at the stations, people operating the new locomotive roster, etc.), more realistic crashes and other accidents, and turntables. It was being developed by Kuju Entertainment, the original "MSTS" creators. Despite restructuring efforts at Kuju, the project was however handed over to Microsoft Game Studios on August 18, 2003. This project was ultimately halted, as the following statement on April 24, 2004 from Microsoft confirmed: On January 19, 2007, Microsoft announced the relaunch of the "Microsoft Train Simulator" project. This time the game was being made in-house by Aces Game Studio (Microsoft Game Studios) known for its long line of "Microsoft Flight Simulators", as a part of the "Games for Windows" initiative. The game would have used the "Microsoft Flight Simulator X" graphics engine and it was planned to be compatible with both Windows Vista and Windows XP. A post on 'The Little Wheel Goes in Back' blog, written by one of the developers, on August 23, 2007 suggested the working title was 'Train Simulator 2'. On January 23, 2009, Microsoft announced that it was permanently closing Aces Game Studios, the internal development studio responsible for the "Microsoft Flight Simulator" series and the development of "Microsoft Train Simulator 2". As a result, all future development on "Train Simulator 2" (which was entering the final stages of development at the time of the closure) was immediately halted, marking the second time that the project was terminated. While Microsoft stated that "they are committed to both the "Flight Simulator" and "Train Simulator" brands", it is unknown if the "Train Simulator 2" project will ever be resurrected and completed sometime in the future. However, considering the fact that they discontinued support for Windows XP in 2014 and Windows Vista in 2017 (the two operating systems the second attempt was to be compatible with), as well as the Games for Windows initiative discontinued in 2013, it seems unlikely. Many former employees of Aces Game Studios went on to join Cascade Game Foundry, a new company that was itself founded by two Aces alumni. Cascade Game Foundry focuses on developing entertainment simulations.