Phantom Dust dev Darkside loses Microsoft partnership, reportedly closes

The remake of Phantom Dust and its studio could be in jeopardy as Microsoft ends its partnership with Darkside Game Studios.

Eurogamer reports that the platform holder is no longer working with the developer, although the game – revealed at E3 last year – is still in development.

"Microsoft partnered with Darkside Game Studios in the development of Phantom Dust, but our working relationship has now ended," a spokesperson told the site.

"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. We look forward to sharing more details on the game as we get closer to release."

Kotaku reports that anonymous sources from within Darkside say the studio – with a headcount said to be around 50 people – is being shut down after Microsoft has cancelled its partnership. 

It’s not clear whether the Phantom Dust that is still in development is based on Darkside’s work or being rebuilt from scratch.