heard this the other day
why did ms cancel so many of their projects
Heard it on a podcast that Microsoft wanted Rare exactly as Nintendo (which is why you see them doing Kinect games) and Rare thought they could have more flexibility.
Unfortunately only one of those green lights matter.
EDIT: On the subject of Banjo being one of those Nintendo-esque games, it was nothing relayted to Nuts and Bolts. Banjo 3 was still on the Nintendo platform and MS wanted more out of the game so they started over with Nuts and Bolts pretty much.