Microsoft’s sweeping layoffs and studio restructuring appear to have quietly claimed another victim: the long-rumored revival of the beloved Banjo-Kazooie franchise.
The iconic bear-and-bird duo from Rare’s 1998 Nintendo 64 classic has been dormant for over a decade, with fans holding out hope that rumors of an in-development sequel meant the series would finally return. Unfortunately, that hope now seems dashed.
A Dormant Classic, Gone Again
Banjo-Kazooie debuted in 1998 as a critically acclaimed 3D platformer where Banjo and Kazooie set out to rescue Banjo’s sister Tootie from the witch Gruntilda. The game spawned a direct sequel, Banjo-Tooie, and two handheld spin-offs before 2008’s divisive Nuts & Bolts marked the last mainline entry.
In late 2023, ResetEra insider NateDrake sparked excitement by claiming that a new Banjo-Kazooie project was actively in development. Microsoft Gaming CEO Phil Spencer even acknowledged fans’ enthusiasm at the time, seemingly giving weight to the speculation.
However, in a recent follow-up, NateDrake cast serious doubt on the project’s future, stating, “I’d assume it was shelved at this stage. It did exist when we spoke of it a couple of years ago.” That discouraging update comes at a particularly turbulent time for Microsoft’s gaming division.
Collateral Damage of a Restructure
The rumored shelving of the project coincides with Microsoft’s announcement of massive layoffs, cutting up to four percent of its workforce — approximately 9,000 jobs. Alongside these cuts, several previously announced or rumored projects have been outright canceled. These include Rare’s Everwild and the reboot of Perfect Dark by The Initiative and Crystal Dynamics, with the latter’s cancellation reportedly resulting in The Initiative itself being shut down entirely.
If true, shelving Banjo-Kazooie adds insult to injury for Rare fans, who have already watched Everwild fade into obscurity over the past few years.
A Changing of the Guard
Fans of Rare have even more reason to feel somber as word spreads that legendary game designer Gregg Mayles is quietly exiting the studio after 35 years. Mayles, who directed both Banjo-Kazooie and Nuts & Bolts, reportedly left amid the upheaval, though no official statement has been issued. His LinkedIn profile continues to list him as employed at Rare in various design roles, but multiple internal sources have indicated his departure.
If confirmed, Mayles’ exit would mark the end of an era for Rare — one of the company’s most prolific creative forces bowing out as some of its most cherished franchises fade further into the background.
A Bitter Pill for Fans
While Microsoft has yet to officially confirm or deny the fate of a Banjo-Kazooie revival, the silence speaks volumes. For fans who grew up with the series and who have waited patiently for a proper return, this rumored cancellation feels like another in a long line of missed opportunities. Its a big stab in the back, where its clearly all about money. Thank-you Microsoft… f*ck you.
Given Microsoft’s continued investment in other high-profile acquisitions and service-driven initiatives, it’s no wonder longtime fans feel neglected. In this climate, it seems the bear and bird may once again be banished to nostalgia — and that’s a hard truth to swallow.
