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starcraft said:

I can't help but get my hopes up - I will be devastated if this isn't true.

Even if they've just been contracted to make the game, that'd be enough.

http://www.vgchartz.com/article/441232/rumor-playtonic-games-possibly-joining-xbox-game-studios-or-developing-new-banjo-kazooie-game/

i don't know how i would feel about MS buying them outright, Yooka Laylee was meh in my opinion a new Banjo would have to feel fresh. I understand why MS would choose them to make a new Banjo game though since they would seem like the safest choice the only other studio would have been Playful.