Scalebound was cancelled reportedly due to a clash of visions between Microsoft and Platinum Games. Its game director Hideki Kamiya already had disagreements with the Windows Company for quite some time.
Apologies to Fans Given
Hideki Kamiya posted several recent tweets about how sorry he is about the game's cancellation. He also promised to work harder and deliver other games instead. Developer Platinum Games also made public apologies about the scuttled Scalebound project.
Fortunately, Platinum has several upcoming games to compensate for the loss. NieR Automata is coming out in Japan on February 23 this year while North America will receive it on March 7. Other games such as GRANBLUE FANTASY Project Re:Link and mobile title LOST ORDER are also under development. Their global release date though has not been set yet.
Scalebound Has Two Conflicting Versions
Some industry observers believed that the Scalebound Cancellation was bound to happen anyway. It seems Kamiya wanted to create a game that did not fit Microsoft's criteria. The Japanese game director was already expressing his disgust with Microsoft via Twitter as early as July 2015.
The Scalebound project also suffered long delays due to staff fatigue and game engine troubles. There were also reports that communications between Kamiya and Microsoft have broken down, according to VG247. There's also a theory the Windows Company's patience finally run out after Platinum could not deliver the game on time. So far, none of the parties are willing to divulge much detail about what really transpired.
Scalebound Update
Fans are disappointed about the cancellation but they are also hopeful that Scalebound can be salvaged somehow. We currently don't know how much work the developer has accomplished on the cancelled game. It's likely though to be substantial. Perhaps Kamiya can find another game publisher to finance the game. Hopefully, fans may yet see the game coming out a few years from now.