Microsoft has confirmed what sources told Kotaku and what the site seemed to be suggesting, that Scalebound has been cancelled.
The Platinum Games title was an action RPG with 4-player co-op, where players formed bonds with massive dragons. It was due to release on PC and Xbox One later this year was being directed by Bayonetta’s Hideki Kamiya.
A statement from the company reads
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. For more information on our 2017 plans, please visit: https://news.xbox.com/2017/01/05/xbox-closes-milestone-year-in-2016/.
Microsoft said that they have great respect for Platinum Games and that the decision to cancel Scalebound came down to “business decisions.”