Rumours that Microsoft’s Vancouver studio had been completely shut down were swirling around the internet this morning, but in a statement to Gamespot, the company has specified that the studio will survive despite cuts. One of the projects that will cease, however, is Microsoft Flight, which means Tim Stone’s desire for “jets, smuggling, and air-sea rescues…via DLC” is likely to be forever unfulfilled, at least in this game. The free to play title seemed to have been designed as an expanding world but there will be no growth now. Our thoughts are with those whose jobs are affected, on this and other projects. Statement below.

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