Microsoft announced today that they have officially terminated the development of Scalebound. The game was being developed by Platinum games and was one of the centerpieces of Microsoft's E3 2014 presentation.
Since the original announcement the game was flying under the radar until rumors of trouble with the development of the game started to surface earlier this year. It always sucks to lose a game that has been in development for this long but hopefully the team won't be let go as part of this cancellation.