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Meant to be the successor to Microsoft Train Simulator, it was originally announced in 2003, until being cancelled in 2004.
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It was being developed by Aces Game Studio (Microsoft Game Studios), known for their long line of Microsoft Flight Simulator games, as a part of the "Games for Windows" initiative. The second project's lead designer, Rick Selby, announced in late 2008 that it was to be compatible with Windows XP, Windows Vista and Windows 7.
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It was postponed indefinitely and virtually cancelled due to the closure of Aces Game Studio in 2009. The second attempt at the game was first announced on January 19, 2007, and originally scheduled for release in the last quarter of 2009.
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Op 23 januari 2009 maakte Microsoft bekend dat het de ontwikkelstudio heeft gesloten en dat de ontwikkeling van Microsoft Train Simulator 2 is geannuleerd.
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