Killer Instinct HD was almost greenlighted
Rare could never solve all of the obstacles
Musgrave says that a number of licensing obstacles and a lack of interest contributed to the title’s failure to get the green light. With the recent renewal of the Killer Instinct trademark by Microsoft, rumors of a possible revival are once again making the rounds.
However, from what we have been able to determine, it isn’t in the cards right now. Perhaps in the future, for the next console, it might have more interest to finally make it happen.
One thing is for certain though - there seems to be more interest in it now than there has ever been.