Developer Darkside Games was working on the reboot of Phantom Dust for Xbox One, but a report from Kotaku reveals that its version of the game has been canceled and the studio shut down.
A Microsoft spokesperson confirmed the studio closure, but also mentioned that development of Phantom Dust continues.
"Microsoft partnered with Darkside Game Studios in the development of 'Phantom Dust,' but our working relationship has now ended," they said. "We have great respect for their studio and their work in the industry. While we do not have anything new to share on 'Phantom Dust' at this time, we can confirm that development of the title continues."
Darkside Games had yet to work on a solo project, but anonymous sources within the company felt confident about Phantom Dust. In fact, one source said "the executives who saw it were impressed and as late as this morning gave our team every indication that the project was on solid ground."
It'll be interesting to see what studio takes over development of the Phantom Dust reboot considering Microsoft still plans to support the project.