Everyone talks about their bears, their block people, and their supersoldiers, but no one ever talks about the Battletoads as options. Why? :V
Banjo and Kazooie were as much Nintendo characters as Bayonetta currently is.
They may have been associated with Nintendo, but they were never actual Nintendo characters.
At the time of the N64,
Nintendo collaborated with
Rare to offer more specific games.
Nintendo has promoted Rare games, which means a special link. Thus,
Rare has cushioned the failure of the N64 with valuable and historic support, including
GoldenEye 007,
Donkey Kong 64,
Diddy Kong Racing and
Banjo-Kazooie. Following these successes,
Nintendo had confidence in Rare, and left him more freedom. That's what
Nintendo regretted. If
Perfect Dark was an apreciated improvement of
GoldenEye 007,
Conker Bad Fur Day was the game that created the dispute between
Nintendo and
Rare.
Conker Bad Fur Day was considered treason and ended the collaboration.
Rare was then divided between those who accepted the takeover of
Microsoft, those who left, and thos who created
Playtonic Games... Separation had an impact on jobs, and therefore on human lives.
Banjo fans generally don't consider this dispute. At the time of
Donkey Kong Country,
Shigeru Miyamoto mocked and denigrated the game created by
Rare. But he apologized, and the relations was been good. I have not heard of any excuse from
Nintendo for rejecting
Rare in a thankless way. From my point of view, the dishonor is on the side of
Nintendo, because he did not grant a second chance. From my point of view, the dishonor is on the side of
Nintendo, because it doesn't hesitate to use
Diddy Kong,
K. Rool and
Krystal in Smash U, while these characters were created by
Rare. The presence of
Banjo would allow to ignore past mistakes (
Rare "treason" +
Nintendo response). But before waiting for a new Fighter from
Rare, it would be mostly an apology from Nintendo that would be welcome.