A source at UK developer Rare has told GamesIndustry.biz that its Banjo-Kazooie title for Xbox 360 has not been cancelled, despite rumours to the contrary.
There is speculation that development of a major, first-party Microsoft title has been stopped. But, if true, this is "definitely not" Banjo-Kazooie, says the source at the Microsoft-owned developer.
Rumours have intensified since Shane Bettenhausen, of US magazine EGM, mentioned them on last week's 1up Yours podcast.
"A big Microsoft first-party title that has been in the works for a very long time, that people are very excited for, sounds like it's being cancelled," said Bettenhausen. He added that the story had a "97 per cent chance" of being true, and may break this week.
Much of the subsequent speculation has focused on Banjo-Kazooie. The finger has been pointed at the latest in the popular series of platform games due to the poor sales of Rare's other family-oriented 360 games, Kameo and Viva Pinata.