IamAwsome said:
While MS definitely take some of the blame, let's not pretend that Platinum hasn't been overextending themselves lately. They're stretched thin and it's showing. They have released 7 games over the last four years, and they were working on this, Nier: Automata, and reportedly another PS4 game at the same time. It seems like they'll do anything for a paycheck at this point. Platinum bit off more than they can chew, and MS doesn't have the best reputation for taking risks (though you can say this about every publisher). I liked Scalebound and hate to see it go, but the writing was on the wall.
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From Neogaf: by ShockingAlberto.
"Ah, here's what I was looking for

July 2015: "Those shits at MS...are they fucking with me?"
So, let's set a timeline HEAVY with speculation. Game was announced at E3 2014 without much notice. It skipped E3 2015, but showed up at Gamescom that year in August with an announcement of four-player co-op, which was shown off with a much rougher game in E3 2016's conference. The game was then cancelled soon after.
My guess is that, in July, Kamiya was told he had to rejigger the game into a four-player co-op thing. There were never any hints he wanted to make the game a Monster Hunter-like, but I am guessing people in charge of money were expecting him to do so. It gets announced, shown off, and the response is tepid. Changing tides at Microsoft, a desire to free up the UE4 team they put together to work with Kamiya, and being unhappy with the state of the game lead to it being cancelled.
If my guess is correct, that's really sad."
^ TL : DR:
MS did the same thing they did with Fable.
They changed what it was supposed to be, at some point into its developement, and that negativly effected the proccess.
Apparently MS where really hard to work with (rumors), and some of workers got burnt out and had too take off for a few weeks of rest.
They came back to work, and the project was scraped.
MS probably bares a big part of the burden of why this game ended up as it did.