This paper describes the development of high-speed, high-precision 5-axis machine tools which can be used for both milling and turning. Conventional 5-axis machine tools are generally difficult to operate because the visibility is poor. Moreover, their precision is inadequate and the rotary axis speed is insufficient for turning. To deal with these factors, we developed a simple, high-precision 2-axis rotary actuator with high-speed direct drive motors. We studied the machining performance of 5-axis machining centers equipped with such direct drive motors.