In this months EGM, rumour specialist Quatermann reveals that spies over at the Rare camp are claiming that work is almost certainly underway on a new Killer Instinct title exclusive for the Xbox 360. Apparently, the game is still early in development but is set to feature the previous title's 2-D gameplay set in 3-D arenas, with the original cast of characters intact and perhaps a few new fighters also entering the fray.
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