We found out today what Retro Studios could be working on and it sounds as though it’s a racing game based on the Star Fox franchise titled Star Fox: Grand Prix. Several big publications Game Informer and Kotaku have also chimed in and said that they have heard that Retro Studios was working on another project. However that project has most likely been canned due to development difficulties.
“We’ve also heard from two other sources that the Austin, Texas-based Retro had a separate project that went through a rocky development cycle and may in fact be canceled.”
“We have heard many of the same rumors, though cannot and do not confirm the veracity of the sources. Rumors of the game have been swirling for several months in light of talk from some sources that Retro Studios’ title has been struggling, with many at both Retro and Nintendo growing frustrated with the state of the project. These sources did not confirm whether the project being worked on was this Star Fox title.”
– Game Informer