After years in development, the Microsoft Studios exclusive "Scalebound" has been canceled.

Built by Platinum Games, Microsoft just confirmed to us that Scalebound's development has ceased and that the two companies have parted ways.

Scalebound was set to be an action RPG with 4-player co-op, where players formed bonds with gigantic, customizable dragons. Microsoft Studios has a pretty packed line-up for 2017 already, with State of Decay 2, Sea of Thieves, Halo Wars 2, and Crackdown 3 in the pipeline. However, Scalebound's closure will disappoint many, as it represented the only known "AAA" Action RPG experience in Microsoft's exclusive portfolio for the near future.

The statement we received from Microsoft reads as follows.

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/.

When I spoke to Hideki Kamiya and Jean Pierre Kellams about Scalebound back at E3 2016, the pair seemed enthusiastic about the project and its future. Scalebound's social media went dark in September, and rumors began to swirl of development issues at Platinum Games, famed for games like Bayonetta.

Microsoft said that they have great respect for Platinum Games and that Scalebound's cancellation came down to "business decisions."

I asked Microsoft if they felt there was now a gap in their line-up after the loss of Scalebound, but they told me that Crackdown 3, Halo Wars 2, Sea of Thieves, State of Decay 2, as well as unannounced "experiences" are still on the way for 2017. Microsoft said they feel that their portfolio is very strong for 2017 "and beyond," offering clues to future unannounced projects.

How do you feel about Scalebound's cancellation? Were you hoping to pick it up? Let us know in the comments or join in the discussion on our forums.

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