Donnchadh Murphy, a former 3D modeler that worked on games such as Donkey Kong 64, Jet Force Gemini and Conker’s Bad Fur Day, has revealed that the team at Rare desperately wanted to make a new Killer Instinct game. Murphy says that while the team wanted to create it, Microsoft were more interested in broadening the Xbox user base.
“Probably the same game every Rare fan wants to see and that’s KI3 (Killer Instinct 3). We all wanted to make KI3, but Microsoft [was] more interested in broadening their demographic than making another fighting game. So it never got made, I doubt it ever will.”