Yooka Laylee was amazing considering it was a small developer. Give that team 25-50 more members for their team and a good budget and they could absolutely make a worthy, modern take on Banjo and, personally, I'd like to see it! But I'd also like more Yooka with a bigger budget too!

I'd be happy if MS bought them and financed their dream games!

Iron Galaxy or Play-Tonic

Rare, they still have some original Banjo staff. Or possibly Rare x Doublefine

Rare would be ideal, if they can hire back a couple of people would be a bonus. I would trust Playtonic with it if Microsoft allowed it. The Rayman Legends team could probably do it if they trusted Ubisoft. Nintendo has allowed 3rd parties access to their ips like F Zero and Star Fox, so Microsoft could do the same. I like A Hat in Time, but I don't have a lot of faith in their practices. Saying we will never make it for the Switch mocking fans, a few years later here you go Switch you get the game and all the dlc's, oh but Sony and Microsoft you are stuck with just the bare bones version and no dlc. Apparently they are still working on the dlc, but come on the game released 3 years ago!

Guys Double Fine is releasing Psychonauts 2 next year. They are a 1st party studio with recent platformer experience. Rare and them should collaborate on the next entry

Do we really want a new Banjo? I don't know why that game is so well-loved... I thought it was Meh.

I mean PG is only known for action games but they have made good RPGs as well. Gamefreak made a good sidescrolling platformer on Genesis. Monkey Ball studio made Yakuza and F-Zero GX. Rare was only known for platformers but they also made a good Shmup on NES and at the time a decent third-person shooter on N64. Vanillaware is known for their 2D action games and just made one of the best 2020 games and it's an RTS. Devs can branch out in other genres and they are a talented studio. So why not.

Haha, I missed the warning but I like your passion for this new game, in that case, the best option would Playtonic give them full support as a second party studio to make a proper Banjo. 

I love Banjo and I want more. I also want more Yooka Laylee. I also have Gamepass, playing however many games I want, for $10 a month. Why wouldn't I want Microsoft to buy Playtonic and fund them fully so they can make an even bigger budget Yooka Laylee or modern Banjo game?

My real delight would be if Nintendo bought Banjo from MS and let Retro Studios make a 3-D platformer Banjo game, but that is way less likely to happen.

Here are the teams I'd prefer made the game

1) Nintendo EPD

A stellar studio that released a brilliant 3D platformer three years ago

2) Ubisoft Montpellier 

With plenty of great platformers under its belt, I'd trust Montpellier with the IP. Ancel leaving the industry is a huge blow, however

3) Double Fine

This really all depends on the quality of Psychonauts 2. The original Psychonauts is great -- and probably the best non-Nintendo/Rare 3D platformer -- but that was 15 years ago

From that shortlist, the only viable choice is Double Fine.

I trust neither Rare nor Playtonic to make a good Banjo game.