A Microsoft representative provided the following statement to IGN:
“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.”
Microsoft further pointed to a recent post on its official site about its additional plans for 2017.
When asked if the Scalebound IP is owned by Microsoft or by developer Platinum, a Microsoft spokesperson simply said "we do not comment on the details of our business agreements with partners," and provided no additional comment when asked if Microsoft will seek to work with Platinum on a separate project in the future.
Scalebound was originally announced at E3 2014 and planned for a holiday 2016 release. Shortly before last year’s E3, Platinum delayed the game to 2017 “in order to deliver on our ambitious vision and ensure that Scalebound lives up to expectations.”