So a bunch of guys who used to be at Rare and a few others (Grant Kirkhope and artist Steven Hurst) have formed a small team, they hope to create the spiritual successor to Banjo-Tooie. Banjo-Kazooie Nuts and Bolts was a fantastic game, but many people didn't like the direction it took, so these guys hope to make the next one of those. They have set up a Twitter account for you to give your support, they have given no word about anything not even console. But I assume it will be a 360 Exclusive.

https://twitter.com/MingyJongo

I wish them the best of luck.

After playing Nuts and Bolts, I would never want a traditional Banjo game again. N+B was too unique to go back from. Another world-based Mario 64 clone would be pretty dull.

OH GOD YES 
 
Though until this is verified it is probably just in the rumour category. I knew Grant Kirkhope was working on something. He kept mentioning his new project on Twitter but never said what it was.

That`s great to hear, and I hope this happens, but call me when they decide to make Donkey Kong 64-2.

@MikkaQ said:

After playing Nuts and Bolts, I would never want a traditional Banjo game again. N+B was too unique to go back from. Another world-based Mario 64 clone would be pretty dull.

Agreed. I want a Nuts & Bolts sequel way more than another 3D platformer.

THIS IS THE GREATEST NEWS I HAVE EVER HEARD!!!!!

FFFFFFUUUUUUUCCCCCCCKKKKKKKK YYYYYEEEEEEAAAAAAHHHHHHH!!!!!!!!

They're not wanting to develop Banjo Threeie. They couldn't even if they wanted to. They don't own the rights to Banjo and have said that they want to create 'something new'. These guys don't have any ties to Microsoft I don't think?

But yeah, FUCK YES!

I need this!

Is this still a thing or was it canned?

Well, here's hoping that they get the time and the resources to be able to make the game they want and the consumers will enjoy it. And another Banjo title would be welcome, I believe, but perhaps it could take what was good from Nuts and Bolts and fuse it with what was good about the originals.

It's still a thing, but they are making ios games too. It will be a very long time before we see our good friend Banjo.