"After careful deliberation, Microsoft Studios has come to the decision to end production for Scalebound", a Microsoft spokesperson said.
There's speculation that Microsoft's enigmatic answer as to who owns the rights to the game - "we do not comment on the details of our business agreements with partners" - could mean that developer PlatinumGames will now shop Scalebound around to other potential publishers.
If you've been waiting for Platinum Games' Scalebound ever since its development back in 2013, you're about to get some disappointing news. Work on the game reportedly came to a halt before the end of the year. Sources for both outlets stated Microsoft and the developer chose to part ways at the end of 2016 and that development on Scalebound had stopped.
The game had been in development since 2013, a statement from PlatinumGames at the time reads: "Development on the game is going well and we're really happy with how it's coming together".
It was a chance for Microsoft to prove that the Xbox One - which was still cast in a negative light at the time - had some really great games in store. Xbox is left with Cuphead, Halo Wars 2, Crackdown 3, State of Decay 2, Sea of Thieves, Tacoma, and more as console exclusives this year. Microsoft has been showing off bits and pieces of gameplay over the past few months, getting players excited for the magnificent battles between your player's dragon and a much larger boss dragon, amongst other fights. Unfortunately, it looks like the relationship between Platinum and Microsoft has gone sour, leading to reports of the game's cancellation.
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When they returned, the game, per The Verge, was even more behind schedule than before. Added to this is Crackdown 3 that could also be at risk.
Created to be exclusive to Microsoft, it was hoped it would drive gamers to the Xbox One over other consoles.
Gamers got their first glimpse of Scalebound nearly three years ago at E3 in 2014.
What do you think of the cancellation of Scalebound?