The Killer Instinct Game and Development Hell?

Killer Instinct, one of those great games in the 90s that was produced by Rare and published by Nintendo and it also had ties with Midway.  Two great games were produced namely Killer Instinct and Killer Instinct II, sadly the home systems were hardly near to the arcade goodness as the SNES was only 16-bit and the N64 didn't have as much power.  Rare is currently under Microsoft after it ended its partnership with Nintendo.  So what could have caused Killer Instinct not to have a third installment?  Puzzles me really on why a third game was never developed and it's been at least 17 years or more!  Only if Rare can release an official word on why Killer Instinct 3 never happened.  One of the worst things is that we'll never know the outcome of Gargos' demise as well.  Sad.  I thought the game had that much potential but sadly, everything went down just like the Conan: Crown of Iron movie.

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