Scalebound, the dragon-taming action RPG from action game maestros PlatinumGames, has been cancelled, publisher Microsoft has announced.

“After careful deliberation, Microsoft Studios has come to the decision to end production for Scalebound”, said Microsoft in an official statement. “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.”

Scalebound was originally announced way back during Microsoft’s E3 2014 press conference. It’s been a prominent feature at many Microsoft conferences since, last seen at Gamescom 2016 in August, yet after almost four years of full-scale development the project has now been shelved.

According to inside sources the relationship between Microsoft and PlatinumGames hit a rocky patch in the second half of 2016. Work was apparently behind schedule and Microsoft wasn’t too pleased with PlatinumGames missing deadlines.

As to what happens to Scalebound now, well, that gets a little murky. From the sounds of it Microsoft may well own the rights, meaning it would be dead and buried for good. If however PlatinumGames owns the IP there is a chance development could continue under another publisher. Could we perhaps even see the likes of Nintendo or Sony swoop in to try and make Scalebound their own? After Sony struggled for a decade with its own The Last Guardian, a game similarly built around a giant, monstrous AI partner, I wouldn’t blame them for being a little wary.

Is this the last we see of Scalebound? Disappointed to see yet another first-party Microsoft title bite the dust? Let us know!