I think this reddit post
voiced my opinion well enough:
This is what happens when you take a 200 man team and develop 9 games at the same time as a project like Scalebound. Between the announcement of Scalebound and the cancellation they started and/or finished these games:
The Legend of Korra
Star Fox Zero
Star Fox Guard
Teenage Mutant Ninja Turtles: Mutants in Manhattan
Granblue Fantasy Project Re:Link
On top of this they apparently forced senior developers off of Scalebound in late 2016, after the game had already been delayed. Apparently when this happened it was the nail in the coffin for the game. They apparently missed major deadlines that Microsoft had set in order to get the game back on track to the point where Microsoft stopped funding the project and finally cancelled it. From the same sources the game was also still having major performance issues.
People are pushing the idea that Microsoft took this lightly, Microsoft had the most to lose with their decision. They bought the IP, funded the project, paid to advertise, gave it two E3 demonstrations, delayed it and gave them more time to work on it and now that it's cancelled they spent all that money and have nothing as a result.
Terrible point of comparison, but like with Konami and MGS:V, Microsoft reached a point that they saw that they would not turn a profit on the game if they were to delay it further and throw more money at the developers. I don't know if there is any truth in the matter, but to give a company money to develop a game for you, only to have them work on other unrelated projects, and allocate their high-profile developers off your project to work on lackluster games, I'd be quick to cut ties with them too.
Waiting on Kamiya to point the finger at Microsoft.