Scalebound was cancelled

After careful deliberation, Microsoft Studios has come to the decision to end production for "Scalebound." We're working hard to deliver an amazing lineup of games to our fans this year, including "Halo Wars 2," "Crackdown 3," "State of Decay 2," "Sea of Thieves" and other great experiences.

Multiple sources have confirmed to Eurogamer that Microsoft and developer Platinum Games have parted ways on the project, and that work concluded before the end of 2016.

Scalebound was last seen in public back at Gamescom 2016 in August. Since then, the relationship between Microsoft and Osaka-based developer Platinum Games dramatically soured.

Work on the game took a serious knock last autumn, Eurogamer sources say, when several senior members of the development team were forced to take a month away from the pressure of the project's heavy workload.

These project members then returned, but Scalebound was now behind schedule. With continuing issues surrounding the game's engine and overdue deadlines, the decision was made that the project could no longer continue.

It's unclear whether Scalebound could still be revived by Platinum, but as we understand it, work on the project as we know it has now concluded. Eurogamer has asked Microsoft for comment.