diff --git a/DEPS b/DEPS
index 771119a..f5dcd70 100644
--- a/DEPS
+++ b/DEPS
@@ -8,7 +8,7 @@
 # See third_party/externals/README
 #
 deps = {
-  "third_party/externals/gyp" : "http://gyp.googlecode.com/svn/trunk@907",
+  "third_party/externals/gyp" : "http://gyp.googlecode.com/svn/trunk@940",
 }
 
 #hooks = [
diff --git a/gyp_skia b/gyp_skia
index ee8c17c..8554412 100755
--- a/gyp_skia
+++ b/gyp_skia
@@ -80,6 +80,14 @@
   # Tell make to write its output into the same dir
   args.extend(['-Goutput_dir=.'])
 
+  # Special arguments for generating Visual Studio projects:
+  # - msvs_version forces generation of Visual Studio 2010 project so that we
+  #   can use msbuild.exe
+  # - msvs_abspath_output is a workaround for
+  #   http://code.google.com/p/gyp/issues/detail?id=201
+  args.extend(['-Gmsvs_version=2010'])
+  args.extend(['-Gmsvs_abspath_output'])
+
   print 'Updating projects from gyp files...'
   sys.stdout.flush()
 
diff --git a/make.bat b/make.bat
index 5ae7898..a2c1664 100644
--- a/make.bat
+++ b/make.bat
@@ -15,9 +15,6 @@
 @rem Launches make.py on Windows, after setting Visual Studio environment variables.
 @rem See http://code.google.com/p/skia/wiki/GettingStartedOnWindows
 
-@rem Force gyp to generate .vcxproj files, as needed for msbuild.exe
-set GYP_MSVS_VERSION=2010
-
 @if "%DevEnvDir%"=="" goto setup_env_vars
 
 :run_python
diff --git a/make.py b/make.py
index b1deaab..346dd6c 100644
--- a/make.py
+++ b/make.py
@@ -19,6 +19,9 @@
 import shutil
 import sys
 
+# TODO(epoger): allow caller to override BUILDTYPE
+BUILDTYPE = 'Debug'
+
 # TODO(epoger): add special 'all' target
 TARGET_CLEAN = 'clean'
 
@@ -30,8 +33,8 @@
 # Simple functions that report what they are doing, and exit(1) on failure.
 def cd(path):
     print '> cd %s' % path
-    if not os.path.exists(path):
-        print 'path %s does not exist' % path
+    if not os.path.isdir(path):
+        print 'directory %s does not exist' % path
         sys.exit(1)
     os.chdir(path)
 
@@ -39,6 +42,11 @@
     print '> rmtree %s' % path
     shutil.rmtree(path, ignore_errors=True)
 
+def mkdirs(path):
+    print '> mkdirs %s' % path
+    if not os.path.isdir(path):
+        os.makedirs(path)
+
 def runcommand(command):
     print '> %s' % command
     if os.system(command):
@@ -92,21 +100,32 @@
         args: command line arguments as a list of strings
     """
     CheckWindowsEnvironment()
-    # TODO(epoger): what about parameters?  (fixed vs float, debug vs release)
+
+    # TODO(epoger): what about fixed vs float?
     # TODO(epoger): what about "make" flags (like -j) that Windows doesn't support?
 
     # Run gyp_skia to prepare Visual Studio projects.
     cd(SCRIPT_DIR)
     runcommand('python gyp_skia')
-    
+
+    # Prepare final output dir into which we will copy all binaries.
+    msbuild_working_dir = os.path.join(SCRIPT_DIR, OUT_SUBDIR, GYP_SUBDIR)
+    msbuild_output_dir = os.path.join(msbuild_working_dir, BUILDTYPE)
+    final_output_dir = os.path.join(SCRIPT_DIR, OUT_SUBDIR, BUILDTYPE)
+    mkdirs(final_output_dir)
+
     for target in args:
         # Check for special-case targets
         if target == TARGET_CLEAN:
             MakeClean()
         else:
-            cd(os.path.join(SCRIPT_DIR, OUT_SUBDIR, GYP_SUBDIR))
-            runcommand('msbuild /target:%s %s.sln' % (target, target))
-
+            cd(msbuild_working_dir)
+            runcommand(
+                ('msbuild /nologo /property:Configuration=%s'
+                ' /target:%s /verbosity:minimal %s.sln') % (
+                    BUILDTYPE, target, target))
+            runcommand('xcopy /y %s\* %s' % (
+                msbuild_output_dir, final_output_dir))
 
 # main:
 # dispatch to appropriate Make<Platform>() variant.
@@ -118,6 +137,10 @@
         print 'Mac developers should not run this script; see ' \
             'http://code.google.com/p/skia/wiki/GettingStartedOnMac'
         sys.exit(1)
+    elif sys.platform == 'cygwin':
+        print 'Windows development on Cygwin is not currently supported; see ' \
+            'http://code.google.com/p/skia/wiki/GettingStartedOnWindows'
+        sys.exit(1)
     else:
         print 'Unix developers should not run this script; see ' \
             'http://code.google.com/p/skia/wiki/GettingStartedOnLinux'