This is good news indeed! A new title would be the best but I'd be happy with the first two games being release on XBLA.

From Neo Gaf:

NEW Killer Instinct Coming Soon?!

http://www.youtube.com/watch?v=0rF1qpFEuPo

Please be true!

Fulgore 4LIFE

ULTRAAA COMBOOOOOOOOO!

Guys

This is not an indication that we're getting a new Killer Instinct. It is not anything of the sort.

It is Microsoft renewing their trademark to protect their intellectual property. They are not going to do anything along the lines of making a new Killer Instinct.

Goddammit, I just changed my avatar to 2 games I was very excited for in one week... now here come's a new challenger - or whatever KI said when a 2nd player joined... I forgot!

Available for your home in 1995... only on Nintendo Ultra Sixty Four the Super Nintendo Entertainment System!!!

Oh shit oh shit oh shit oh shit.
Okay, this is megaton. The video cyrus_atx posted gives good hope!

Good news for the game but bad news in the renewal by Microsoft... So many good memories on SNES and N64!!

The only company that can revive this game is Retro Studios. Atmosphere, soundtrack & gameplay.

Other than that is bad news. I am already concerned with MS as it is already.

nope.

"On January 2, 2007, founders Tim and Chris Stamper left the company to pursue "other opportunities". Rare's current Studio Creative Director is Simon Woodroffe, who previously worked at several studios including Midway Games, Ubisoft, and Sega."

"Around the same time, numerous employees left the company and formed new studios. The most notable of these studios was Free Radical Design, which was composed of several members of the GoldenEye 007 team.^[2]"

"Despite solid reviews, their Microsoft titles sold worse than expected. As a result, Microsoft decided to restructure the studio during the end of the decade."^[19]

"Kinect will be the main focus for Rare going forwards as it's a very rich canvas. This is just the beginning of an experience that will touch millions of people."[22

"Chris Tilston: Let's be fair. We still have that backing. We were able to go to Ken Lobb, creative director at Microsoft, with a crazy concept that probably most people would turn down.

Every game I've made, I've worked with Ken. Ken was a big part of Killer Instinct. And in a way it's carried on. It was a good nurturing environment there. But things change. Back then a game cost $2 million to make. Nowadays a game costs $20, $30 million to make, and then they add probably the same amount in marketing. It's a huge risk. So more people have to get involved.

Before we left Rare we were working on an XBLA thing, which wasn't released. But nobody cared about it because it was so small. You're under the radar. It's just because games are so expensive to make now and management guys' careers are on the line if they back the wrong one, if they suddenly spent $30 million and got no return for it, that all these extra people have to get involved.

For us there was a definite gap between doing Perfect Dark 64 to Perfect Dark 360, where the team size just went ridiculous. But it's nowhere near the team sizes they have today where you've got 100, 200 people working on a team. On Project Dark Zero, we were probably 25 people for most of the project.

Yawn. They're probably just renewing the copyright because that's what the paper-pushers get paid to do.

I don't think they have any intention of making a new game.