Well, it's been quiet for a few months but now Microsoft have confirmed Scalebound is officially cancelled. http://www.windowscentral.com/xbox-exclusive-scalebound-has-been-canceled I wasn't sure about it anyway tbh, it looked really cool but there's something about dragons that turns me off things. Which is weird cos I think dragons are cool, but give me sci-fi over fantasy any day honestly.
So it was turning out more Lair than Panzer Dragoon. A shame, but Microsoft first party games aren't much to get excited about right now anyway, what with the Windows Store sleeping on their couch, drinking all the beer and all.