From memory, Microsoft did release a version of it's flight simulator for the original Xbox, so it has been done before (although I suspect a combat sim should have been tried before a civvy one!) - but the market for consoles is broader now, and the PC sim market declining.
@MajorMinor - if you've been playing flight sims for any period of time, you'd know that current consoles have well and truly enough horsepower to run a number of classic sims (including the original IL-2 and it's sequel) without working up a sweat - I'd be _very_ surprised if either the 360 or the PS3 couldn't handle any of the current sims on the market, with perhaps some concession in texture detail to the more resource or memory-intensive ones. The issue for flight sims on consoles isn't about the hardware this gen (far from it), it's about getting the audience over. Hopefully, with PC on decline, there are enough former PC aviators that are interested in trying things out on the console space. Combine that with higher resolution TVs and former PC pilots may well jump over, and hopefully get a few non-simmers into it as well. As a console gamer first and foremost (but former PC gamer, and a fan of IL-2:FB) I definitely think there's hope - don't forget that the driving genre on consoles is dominated by GT, the claim to fame of which is realism in handling and the like. We just need to get a similar interest in realistic flight games, and it'll be good

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