I ran across this issue while attempting to build some TypeScript in Visual Studio Code while following along in @DeborahK's Pluralsight course "Angular with TypeScript".
I came across the same error message in the Visual Studio Code OUTPUT panel.
'tsc' is not recognized as an internal or external command, operable
program or batch file.
I had recently done a global installation of TypeScript 1.8.9 from npm.
npm install -g typescript
However, checking the TypeScript compiler version in my cmd shell would show an older version, 1.3.0.
$ tsc -v
To get around this, I removed references from the "Path" variable in my "System variables" (Advanced system settings > Environment Variables... > System variables). I removed the following path:
C:\Program Files (x86)\Microsoft SDKs\TypeScript\1.1\
I learned that the Visual Studio 2013 installation I also had on the same machine included an installation of TypeScript 1.3.0. Cleaning my "Path" variable fixed the output on my TypeScript compiler version check.
Sadly, I still had the issue in Visual Studio Code. The thing that inevitably fixed it for me was a reboot.
If you got this far down in the thread, that's what fixed it for me. YMMV.