diff --git a/DEPS b/DEPS
index 1148bcf696..f5dcd708bf 100644
--- a/DEPS
+++ b/DEPS
@@ -8,7 +8,7 @@ use_relative_paths = True
 # See third_party/externals/README
 #
 deps = {
-  "third_party/externals/gyp" : "http://gyp.googlecode.com/svn/trunk@995",
+  "third_party/externals/gyp" : "http://gyp.googlecode.com/svn/trunk@940",
 }
 
 #hooks = [
diff --git a/gyp_skia b/gyp_skia
index 75a3a21d98..f44d99148c 100755
--- a/gyp_skia
+++ b/gyp_skia
@@ -86,6 +86,7 @@ if __name__ == '__main__':
   # - 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()