Not just Everwild: Microsoft would have also canceled a new Banjo

Dark times are being lived in Rare after the cancellation of Everwild and a hypothetical new Banjo that was already in development.

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The personnel cuts implemented by Microsoft on July 2, 2025, have had a significant impact on several projects and studies within the company. One of the most affected has been Rare, which has not only seen the cancellation of Everwild after years of development, but also suffered layoffs that could have negative consequences on other officially announced projects.

According to information revealed by informant Nate The Hate on the ResetERA forum, Rare may have ceased development on a new Banjo-Kazooie game, which had apparently been in the works for several years.

A new Banjo has been in development for years

Although rumors about a new game in this historic platformer series had been circulating in the past, Nate The Hate added that he had not received any further information about the development status, suggesting that it is likely that this project will not come to fruition after the resizing of the English studio desired by Microsoft.

The situation surrounding a possible new Banjo-Kazooie has been the subject of speculation in the past, with some sources confirming the existence of a new episode, while others believed that Microsoft was not interested in reviving the brand. However, considering the impact of the layoffs on Rare, it may be time to abandon hope of seeing the return of the dynamic duo that caused such a stir in the Nintendo 64 era.

Update: Nate the Hate believes that the unannounced Banjo-Kazooie game was also cancelled.
byu/Plebian_Donkey_Konga inBanjoKazooie

In addition to Everwild, another historic IP originally created by Rare has suffered a bad ending. Perfect Dark, which was in development by The Initiative, was canceled and the studio closed its doors. These events highlight the significant impact that Microsoft’s personnel cuts have had on several projects and studies within the company.