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The history of the RailWorks (Franchise) series and technology can be traced back to 2001 when Kuju developed Microsoft Train Simulator (Game), an ambitious but profoundly boring train simulation game with an active modding community to this day. Eventually, they developed the successor called Rail Simulator (Game). The graphics were not a vast improvement over MSTS, but the physics improvements were a major focus. By utilizing the PhysX (Concept) middleware, Rail Simulator offered much more advanced physics simulations such as individual wheels slipping on the rails. The game came with a world editor to build your own routes.
After some corporate shuffling and an uncertain future, a subsidiary of Kuju was created and named RailSimulator.com. Due to the difficulty in offering a consistent and updated experience across players with retail games, as well as acquiring the maximum amount of money by charging for said updates, it was decided that Rail Simulator would turn into a Steam (Concept) exclusive title and thus RailWorks was born. The Steam platform allowed the developers to issue timely updates to every player and to utilize the DLC system to nickel-and-dime their users for additional content such as routes, locomotives, and scenery assets. This system also allowed third party expansion makers to develop and release DLCs to a single centralized store and for users to know that the content is officially supported by RailSimulator.com. In 2010, a significant free update to RailWorks was released and the name of the game was curiously changed to RailWorks 2. It contained a new driving interface that was easier to use, Steam Achievements (Concept), and a "Career System" that is basically leaderboards of the game. Similar to RailWorks 2, Railworks 3: Train Simulator 2012 (originally renamed just Train Simulator 2012) is a free update for all existing RailWorks owners. New purchasers currently get upgraded to the "Deluxe Edition" that contains the Horseshoe Curve Expansion, which is designed as a showcase of the enhancements made to the RailWorks engine.
The new graphics engine can be toggled on or off in order to provide compatibility for existing content or users with older hardware. The developer is working on adding online multiplayer support in the future.