Remember Phantom Dust, the reboot of the niche action strategy title that Microsoft announced at E3 2014? According to Kotaku, indie studio Darkside Games has laid off staff following Microsoft cutting ties with it.

A Microsoft representative told GameSpot that, “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.”

It was also confirmed that development on the game would continue. “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.”

Which other studio will be assigned to finish up Phantom Dust and how will that affect the game’s release? We’ll find out in the coming weeks so stay tuned for more information.