Xbox maker cans development on Pirates of the Caribbean director’s motion-sensing game Matter.

Microsoft has canceled Pirates of the Caribbean director Gore Verbinski’s Kinect game Matter, the company confirmed to Joystiq today. It was to be developed in partnership with the film director and Blind Wink Games and release on Xbox Live Arcade this year.

“Microsoft Studios is no longer pursuing this title,” Microsoft said. “We have no further details to share at this time.”

Verbinski signed an exclusive deal with Microsoft in 2011 to deliver “original interactive entertainment content” to Microsoft platforms across the world. Matter was to be the first project in this arrangement. The deal was also to include media beyond games.

It is not clear if the entire Verbinski-Microsoft deal has been scuttled, or just Matter. A Microsoft representative provided the same comment as above.

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