Phantom Dust Xbox One's Developer Shuttered, But Development Continues

Microsoft claims the game remains in development.

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Microsoft has cut ties with Darkside Games, the studio responsible for the new Xbox One game Phantom Dust, resulting in the studio's shutdown, according to a new report by Kotaku.

The Florida-based independent studio reportedly laid off its staff after Microsoft canceled the version of Phantom Dust it was working on. In a statement to GameSpot, a Microsoft spokesperson didn't address the closure, stating, "Microsoft partnered with Darkside Game Studios in the development of Phantom Dust, but our working relationship has now ended. We have great respect for their studio and their work in the industry."

The spokesperson then went on to confirm that Phantom Dust is still coming: "While we do not have anything new to share on Phantom Dust at this time, we can confirm that development of the title continues. We look forward to sharing more details on the game as we get closer to release."

As for when that release is coming, we really don't know. Following the discovery of a trademark filing, the game was unveiled at last year's E3 as a reboot of the 2005 Xbox game of the same name. Since then, we've heard little about it, and today's developments could mean it'll now be longer before we see it again.

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