What in the sim determines permanent damage and initiating the 'game over' screen?

It is rumored (I don’t believe this has ever been confirmed officially, but it sounds plausible to me) that we will never see official damaged aircraft because these aircraft brands are licensed and the aircraft manufacturers don’t want MSFS to show a twisted fiery wreckage featuring Airbus, Boeing, and Textron Aviation.

Again, I’ve never heard that from official sources, but it sounds plausible to me.

That being said, there are some Wishlist topics that may interest you:

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