This is my idea and is not rumored but I was wondering what you all think of this idea.  Diddy Kong Racing is one of my all time favorite games and is my favorite kart racer.  Unfortunately though Diddy is owned by nintendo.  However the other characters on the game is not.  ill post a list below.  

Anyways Sony has ModNation Racers and Nintendo has Mario Kart.  I think it would be great if Microsoft pushed for a Rare Kart Racer and you could replace Diddy Kong with an avatar which was made by Rare.  So what do you all think of this idea?

Old character list

Diddy Kong (Nintendo)
Banjo (Rare)
Conker (Rare)
Krunch (Nintendo)
TipTup (Rare)
Pipsy Rare)
Timber (Rare)
T.T (Rare)
Drumstick (Rare)
Bottles(Rare)

New Character List

Avatar (MSFT Mascot)
Banjo (Banjo& Kazooie)
Kazooie ( Banjo & Kazooie)
Grunty ( Banjo & Kazooie)
Conker (Conker Live & Reloaded)
Berri (Conker Live & Reloaded)
Kameo
Joanna Dark (Perfect Dark Zero)
Mumbo  (Banjo & Kazooie)
T.T (Diddy Kong Racing Mascot)
Viva Pinata Character

This is a good idea. LBP Karting wanted to get some of the MK base.

A good Microsoft racer could attempt the same.

Some people just prefer this kind of racer rather than the super realistic ones.

I think the problem would be that most people don't know who the characters in your new list are.

If anyone wants to know what the game was like, condensed version:

DKR 100% complete in 2 hours 11 minutes by 0xwas.

http://www.twitch.tv/0xwas/c/1881567

I would have but I was trying to only include characters that has been on Microsoft Consoles.  Although that may soon change  XD Really hoping for  KI and Jet Force game

I put the games beside them if that helps any.

Killer Instinct is at least PART owned by Nintendo, as Nintendo published it, and Nintendo hired Rare to make them a fighting franchise. If this were not the case, I'm rather certain RARE/Microsoft would have done SOMETHING with the IP after all this time.

It's also worth pointing out that Rare is a shell of their former selves at this point, with nearly ALL the talent behind the DKC, (original) Banjo, Killer Insticnt, and Goldeneye/Perfect Dark games gone elsewhere. Look what happened when they tried to make a new Banjo. They couldn't even get that right. I'm not too sure I'd trust them to make a good DKR type game now, let alone a new Killer Instinct. And personally, I'd rather not see a KI3 on Xbox. The series was good for what it was....but it's probably better off left alone now.

No Rare owns it.  They was trying to get it patented last year or something like that but they are having problems with the name because some movie is named something similar.  Somebody will correct me if im wrong but it is owned by Rare and there has been recent activity with the IP

Her name is Joanna Dark.

Killer Instinct was also the name of a fox television series, and their application was denied on the basis that it would cause confusion, but I think they have a pretty solid case to get that decision overturned. Seeing as their first game in the series came out before that series, and that television series is basically defunct. That said they probably would not even have to go that far.

In all likelihood Fox would probably abdicate any claim to the name for a mere pittance. So all that Microsoft would have to do was contact them directly, and they could sort it out in half an hour. That said renewing the copyright isn't any kind of proof that they intended to do anything with the name. Just that they wanted to keep the name safe. Companies often renew copyrights to keep others from squatting on them. It doesn't cost them much so why not.

I think your idea has some merit, but I think Rare would do better by actually hybridizing their kart racing property. With their BlastCorps property. While tossing in the customization that was available in Nuts and Bolts. Doing that would make the new property seem far less derivative. While at the same time adding a great deal of depth to the total package.

BlastCorps had a lot of cool vehicle concepts, and was focused around environmental modification. You could keep the standard race, and battle modes. While having the added benefit of a destruction derby mode. Along with the boss modes, and over world that was part of the kart racing property.