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Banjo Kazooie 3 coming late 2008

In addition to chatting about Alan Wake and the Marvel MMO cancellation, Microsoft Games Studio head Shane Kim revealed to MTV's Stephen Totilo at last week's DICE summit that Rare's Banjo Kazooie 3 is slated for a 2008 release. Said Kim, "I'm super-excited about what they're doing with Banjo' I think Banjo is going to be a big hit for us this holiday."

Kim also noted that Rare may go back to developing M-rated games as well as continue along the family-friendly route we've seen for the past few years. Last we heard, Rare was working on a vision cam-supported collection of party games dubbed The Fast and the Furriest for Xbox Live Arcade. With little to no information on Banjo 3, we're hoping next week's GDC will have more revelations.