Signal Studios has since confirmed that the game's removal is now permanent:
Signal Studios must regretfully announce that despite our best efforts and the games success, Microsoft has discontinued support for Ascend: Hand of Kul on the Xbox 360 and removed the game from the Xbox Live Marketplace. This surfaced to us while investigating various issues players have been experiencing over the weekend.
We are deeply saddened by this decision and the impact it has on our community. While Microsoft discontinued support for the Xbox 360 version of Ascend, Signal has released a free BETA version of the game on Steam with a wealth of gameplay improvements where the community can still enjoy slaying trolls and converting altars.
In appreciation of our fans, Signal Studios will grant all new Ascend PC players a starting bonus of souls totaling 25K which can be used to purchase gear, spells and buffs. All existing Ascend PC players will receive a 10K soul bonus just for playing.
Visit our Steam page for more information: http://store.steampowered.com/app/233630/
At first glance, another Xbox LIVE Arcade title has bitten the dust. Free-to-play Ascend: Hand of Kul
is the latest title to be removed from the Xbox LIVE Games Store without warning. However, there is a chance that this delisting is only a temporary affair.
Over the last few days, many players have been reporting that they have been unable to load the game past the title screen. The game would request players to download an update, but after they had downloaded that update, the game would refuse to load. The title update would not append itself to the version of the title that was currently in the Games Store. Developer Signal Studios has promised that they are looking into the problem but, meanwhile, the title has been completely removed from the Games Store.
If we get any information on the status of the update or the game itself, we will be sure to let you know!