I keep going back to the idea of ESP.
Here's the 2007 news item on the Microsoft site. Remember that Lockheed Martin purchased ESP, and have built Prepar3d from it. The main focus of ESP was a Platform for Visual Simulation, just as it says in the headline. Here's a quote from the article:
Capitalizing on years of investment in the Microsoft Flight Simulator franchise, Microsoft ESP allows partners and developers to focus on creating compelling and differentiated Windows-based solutions that go beyond entertainment and are consistent with the industry’s move toward serious games and games-based learning as training tools. The initial version of the platform focuses on Microsoft’s established strength and expertise in aviation capabilities and is targeted to military and commercial aviation audiences. Future versions of Microsoft ESP will expand beyond aviation into ground and maritime operations, indoor and avatar-centric simulations for commercial, government and academic learning opportunities.
Now LM have built ESP into a great flight simulator, but they haven't really worried too much about looking beyond that. Although our aircraft and airports look a lot better, 90% of the 'world' looks the same as it did prior to ESP, with just a few tweaks here and there. Pretty much the same landclass/topo/autogen etc. Who here only uses 'default' Prepar3d or FSX?
So it seems like the ideal time for Microsoft to rebuild their visualisation tool which started with ESP, and can now harness the cloud to deliver the whole world to those 'commercial, government and academic' customers. Like ESP, the initial release will be targeting at aviation, then expand to other areas. This is what people have been expecting Google to do with their resources such as GE, but it looks like Microsoft gets there first.
So, as flight simmers, we hopefully get to take advantage of this, but we are not now or will ever be the target market. Even if it fails as the new ESP, it might be successful enough as a PC/console game. So if MS don't manage to get tens of thousands of commercial customers, they might get a million or two gamers. A few thousand simmers are not going to be more than a blip in the market here, so we might not get the perfect flight simulator that we all expect.
Whatever we do get will probably still be great in a lot of ways. We might even get the train simulator that they were working on back then:) I can remember plenty of animated people in the station, and these were also shown in the previews of the new flight simulator. They obviously survived the decade in the wilderness, because they show up again in the new video.
Based on what I remember from those days before it all fell apart, we will get a good multi-player system, because that's always been a big part of Xbox gaming, but it is up in the air whether we'll get third party access to an open SDK. That would be great, but I won't bet the farm on it. Speaking of the farm, imagine being able to use a downloaded and ready-to-go simulation of your ranch, down to the outhouse. People pay plenty for that sort of thing.