In a statement provided to Polygon, Microsoft said it'll be working with a new team on the franchise, but left it unclear whether that pertains to the Xbox One game's first season, the expected second season, future games, or a mixture of the three.
"We have thoroughly enjoyed working with Double Helix and wish them success in their next endeavor," a Microsoft spokesperson told Polygon. "We want all of our loyal fans to know that the Killer Instinct team at Microsoft is not changing and that the franchise will remain with Microsoft Studios. We remain dedicated to delivering a great experience and plan to announce our new development partner soon. We're excited about the future of this popular franchise."
As it stands, the revived fighter's next update is due next month, when it's set to receive classic combatant Fulgore as an addition to the roster.