UPDATE: Platinum Games has issued an apology for Scalebound's cancellation. In a statement, president and CEO Kenichi Sato said:
"We're sorry to say that on January 9, 2017, Microsoft Studios announced the cancellation of Scalebound. We are very disappointed things ended up this way, especially since we know many of our fans were looking forward to this game as much as we were."
"Going forward, we will strive to continue delivering high-quality games to you, starting with NieR:Automata in March, and including products like Granblue Fantasy: Project Re:Link and Lost Order in the future. "We will keep working hard to meet your expectations and we look forward to your continued support."
Original Story: Scalebound has been grounded. Microsoft Studios today confirmed the cancellation of Platinum Games dragon-centric Xbox One and PC action RPG to Windows Central.
The game's status was first called into question earlier by Kotaku, which cited multiple sources with the news that Scalebound development was in trouble, with cancellation a possibility.
"After careful deliberation, Microsoft Studios has come to the decision to end production for Scalebound," the company told Windows Central. "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."
January has been a cruel month for Scalebound fans. Platinum began 2016 by announcing that the game had been delayed into 2017. At the time, it said development was going well, but it needed more time "in order to deliver on our ambitious vision and ensure that Scalebound lives up to expectations..."
Much like Microsoft, Platinum also has a number of other projects in the works, most notably Nier: Automata, which is set for release on PlayStation 4 early this year and PC sometime in 2017. Looking further out, the company is also working on Granblue Fantasy: Project Re:Link for PS4 and PS4 VR, as well as Lost Order for Android and iOS, but those two projects have not been confirmed for release outside of Japan as of yet.