yup, using smart LOD (each object has it's own fade-out radius) is exactly the way to do it. The Engine will do a lot of the work; even intelligently placing the right objects.
FS9/X already has land-class definition. All it takes is for the engine to do some "thinking" and fade the objects in and out.
- For example, at 3000 feet, you see buildings and trees and some cars
- At 1000 feet, you see driveways, parked cars, telephone poles
- At 100 feet, you can see grass, rocks, etc.
The engine can randomly place these objects based on a set of rules.
About the above post regarding FS rendering a large space instead of a tiny area. This is somewhat true, but today's technology totally allows "seamless" worlds with high detail but without load times. Take a look at FUEL, which renderings a HUGE and EXTREMELY detailed world...all seamlessly.
Anyways, developing a flightsim is a lot work. I've often thought about putting a studio together to do it...but business wise, it's just way too risky. It's a niche market; i bet the sell-through numbers for even FSX is somewhere between 500,000 to 1 million units world wide.
Using that number, as a developer, you usually get about 30% profit from the sales. Whole sale for a 50$ game to retailers is about 10$ (if you are big like MS or EA). Thus, you get about 3$ per copy sold.
3 x 1,000,000 units sold = 3,000,000 USD. Umm... it takes a lot more than 3m to develope a flight sim.
Since Microsoft is also a publisher, they'll keep the entire 10%. Thus about 30m+ in profit. However, i'm sure it took that amount to make and market FSX. So in the end...it's just not worth it.....and thus, the closing of the studio.
-feng