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Ryuu96 said:

I'm also concerned we'll have a bit of repeated history, I always thought it would have been better for them to create a team for Killer Instinct, a team formed by developers who are passionate about Killer Instinct and under Xbox, it's also a title which could last years with regular content updates and the team wouldn't even have to be that big, Microsoft could also do with an internal fighting studio too, it's an area they're frankly massively lacking in.

They lost Double Helix to Amazon which they didn't expect and it hurt Killer Instinct, luckily they found Iron Galaxy but after they were done with Killer Instinct, Microsoft for some reason couldn't find a team for it, maybe Iron Galaxy didn't want to work on it anymore but there's conflicting stories on that, Iron Galaxy said they loved working on it and would consider working on it again, it could be that they are too busy though.

Now they're contracting it out to a massive publisher who frankly doesn't need Killer Instinct (or Microsoft's funding) at all, how long until Bandai is bored of it and moves onto something else because they have offers everywhere...They could drop Killer Instinct at anytime in favour of something else and then we end up with Microsoft spending years trying to find yet another studio for the IP.

I really would not waste the time worrying about something I have absolutely no clue about.  First and foremost I would just be happy that MS found a solution to getting a new KI done.  As to who does it, how they do it and what comes of it can wait until we actually get info on it not vague rumors.  The main issue is getting it done and who knows where things can go from there.  It might give MS enough time to build the specific team they are looking for.