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Phantom Dust reboot studio reportedly shuts down, game still in the works

Michael McWhertor is a journalist with more than 17 years of experience covering video games, technology, movies, TV, and entertainment.

The Xbox One reboot of cult hit Phantom Dust may have hit a worrying snag in development. According to a report from Kotaku, the game's original developer, Sunrise, Florida-based Darkside Game Studios, is no more.

Microsoft canceled Darkside Game Studios' version of Phantom Dust, Kotaku reports, seemingly leading to the studio's closure. We've contacted the studio for details on its status.

According to a statement from a Microsoft spokesperson and executives on Twitter, Phantom Dust is still in development for Xbox One. Head of marketing for Xbox Aaron Greenberg says development on the new Phantom Dust is moving "full steam ahead," though he did not specify who is overseeing development of the game.

Darkside Game Studios has contributed to a number of titles from publishers like 2K Games, including BioShock 2 and Borderlands: The Pre-Sequel, and Microsoft, including Gears of War: Judgment and Sunset Overdrive.

Microsoft unveiled its new Phantom Dust in the form of a pre-rendered trailer at last year's E3. Microsoft provided few details on the game — it never officially said who was developing it — which is expected to be a reboot of the 2004 Xbox game of the same name. Phantom Dust is a card-based action-strategy game designed by Yukio Futatsugi, who oversaw development of the Panzer Dragoon series on Saturn and Crimson Dragon for Xbox One.