Update: Microsoft has officially cancelled Scalebound and has released the following statement:

“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.”

Original Story: According to Kotaku’s Jason Schreier, Scalebound, the anticipated action game being developed by Platinum Games, is in serious trouble and may be cancelled.

Scalebound is one of Microsoft’s key Xbox One and PC titles for 2017, so its cancellation would represent a considerable blow to the company’s first party portfolio. Kotaku reached out to Microsoft for comment and received the following statement: “We’ll have more to share on ‘Scalebound’ soon.”

Microsoft first announced Scalebound three years ago at their E3 2014 Xbox press conference and reports indicate that the game, which is being directed by Bayonetta creator Hideki Kamiya, has been in development hell for quite some time.

Schreier is a trustworthy source for these types of stories, so we have no reason to doubt he’s wrong on this one. That being said, Scalebound looked pretty cool from what we’ve seen of it, so it would be a shame if it ends up getting canned altogether.

(Source: Kotaku)