• The playable hero and his companion dragon traversing the grasslands in 'Scalebound.'

The playable hero and his companion dragon traversing the grasslands in 'Scalebound.' (Photo : YouTube/ MKIceAndFire)

"Scalebound," an Xbox One exclusive game, has officially been canceled. The game was being developed by PlatinumGames, the same company behind the "Bayonetta" games and was set to be published by Microsoft this year.

"After careful deliberation, Microsoft Studios has come to the decision to end production for 'Scalebound,'" Microsoft told Polygon. "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."

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The game was last shown to the public during the Gamescom event in August 2016. However, the development was allegedly in trouble by this time, Eurogamer reported. Bigger problems arose during the Fall when key members of the development team were forced to take a month off due to the heavy workload.

When these key developers returned, they reportedly discovered the project was behind schedule. It is further stated that the game suffered from issues with its engine and the stacked overdue deadlines. Due to these issues Microsoft pulled the plug on the project.

Although the game could still continue on solely with PlatinumGames behind it, it is stated that this is less likely to happen. Microsoft played a large role in funding the project and a part of this would include the deal of keeping the game as an Xbox One exclusive.

Hideki Kamiya, the man behind the "Devil May Cry" series, the "Bayonetta" games, "Resident Evil 2" and "Okami" was primarily in charge of the project. The game was a third-person action title that focused on the player coordinating attacks and riding a dragon. Co-op multiplayer was also a key mechanic in the game.

"Scalebound" was first announced during E3 2014 and by Gamescom 2015 Microsoft announced it would launch by the holidays 2016. This was then pushed back to 2017 and the game held onto that launch window until it was canceled.

The E3 2016 footage, which focused on multiplayer mechanics, can be viewed below: