Although many players expected a different outcome, the game is still being developed.
It has been confirmed by Xbox’s Phil Spencer himself:
Should ship before E3.
— Phil Spencer (@XboxP3) January 29, 2017
Just to remind you, Phantom Dust was originally revealed at E3 2014 as an Xbox One exclusive title. It aimed to be a series reboot, but this year news appeared that it became a remake instead.
With Scalebound cancelled and other exclusive titles (e.g. Fable Legends) being killed off, many believed Phantom Dust will share their fate. We could have been wrong and it appears we’ll have a chance to play the game before E3 2017 – that is before June 13th.