Darkside Games, the studio working on the Xbox One reboot of Phantom Dust, has been closed.
Kotaku reports that around 50 people have lost their jobs, with studio sources claiming that the move was as a result of the game's cancellation. Phantom Dust was to be Darkside's first solo project following its previous work on Gearbox's Borderlands and Insomniac's Sunset Overdrive.
Microsoft, however, insists that the game remains in production, although it hasn't confirmed which studio is now handling development.
"Microsoft partnered with Darkside Game Studios in the development of Phantom Dust, but our working relationship has now ended," a Microsoft rep stated. "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.”
Phantom Dust on Xbox One was announced at E3 last year. The Xbox original was never released in Europe.