New technologies are transforming the business simulation industry. The technologies come from research in computational fields of science, and they endow simulations with new capabilities and qualities. These capabilities and qualities include computerized behavioral simulations, online feedback and coaching, advanced interfaces, learning on demand, and the ability to teach specific knowledge. While describing the new technologies, this article also describes the industry's transformation by estimating its size, presenting trends affecting demand and supply, and analyzing its structure. It is believed the industry is going through Schumpeter's process of creative destruction. (Contains 1 figure and 6 tables.)