Microsoft Game Studios is ending development on the free to play flight simulator Microsoft Flight as 35 people have been laid off. This also will effect Project Columbia which was believed to be a Kinect game that was a shooter.
The studio will continue to operate as Microsoft will be trying to find new jobs within the company, for those that were laid off. There are still several teams working on games at the studio.
Microsoft Flight will still remain available for download for those looking to try it out.
News Source (Giantbomb)