As E3 rolls around, so do the rumors. If getting a sequel to Donkey Kong Country Returns isn’t exciting enough for you, then maybe these next rumors might be. Of course, assuming there’s even any basis in it, but anyway!

According to a site called Gameolosphy, (notice how it’s the smaller sites reporting rumors?) Rare might be in the process of developing 3DS games. Here’s the paragraph in question:

“Rare (or Rareware if you prefer) and Nintendo have had discussions about 3DS development. Nintendo and Rare still have a good relationship with each other, especially since Diddy Kong Racing DS did so well. Just like with the GBA and the original DS, Microsoft doesn’t seem to have a problem with Rare developing a 3DS game since none of Nintendo’s handhelds are in direct competition with any Microsoft products. Nintendo brought up the idea of a 3DS enchanced port of Star Fox Adventures, but nothing is in development. Basically a port with extra enhancements, similar to Rare’s Diddy Kong Racing DS for the Nintendo DS. Don’t be surprised if Rareware gets 3DS development kits by the end of this year. Banjo-Kazooie on 3DS is not out of the question either. Microsoft thinks that if some of Rare’s games do well on Nintendo’s handhelds, then it may lead to Nintendo gamers buying Microsoft systems to play Rare’s games.”

And that would be all she wrote. Except that, judging from interviews and key events like the DS team dissolving after the release of Viva Piñata Pocket Paradise to work on Xbox Live Arcade titles (such as the unreleased Jet Force Gemini XBLA), this doesn’t seem so likely. Microsoft and Rare heads have mentioned in previous months how it’s all about Kinect and how older IPs might come back, but it’s just not their focus. Also, one really wonders exactly how well Nintendo and Rare’s relationship is, especially since Nintendo did quite the cockblock for XBLA and Virtual Console gamers in the form of Goldeneye XBLA.

Would Rare on 3DS, with a game like Banjo-Kazooie or Star Fox Adventures, be great? Sure, if you can handle Grant Kirkhope or David Wise not reprising their roles as musicians for spinoffs and/or sequels to whatever Rare/Microsoft/Nintendo might (key word) have plans for.

Like all rumors, I’d recommend to take them with a grain of salt. With something this unlikely given recent statements and Rare and Microsoft’s direction so far? You might want to take this rumor with something significantly smaller than a grain of salt.