Dutch website
Xbox360only.nl, ever the source of juicy rumors, is reporting that Microsoft's developer buddy Rare is working on an updated version of the creature-fest brawler Killer Instinct. The initial rumor comes from the UK game magazine Games TM, but there is no first party source cited.
Killer Instinct was little more than a Mortal Kombat clone, but it succeeded in bringing a more fun style to the genre. KI was also notable for making you feel like the Super Nintendo was actually bringing you arcade quality experiences. The developer made the SNES sing, and the character designs and special moves were a blast. I love MK's Subzero, but I always secretly preferred Glacius and his Terminator 2-style puddle move and spiked ice fists.
It would be nice to see a truly next-gen Killer Instinct push the limits of the technology.