Baker reported that this Killer Instinct 2 will soon be officially announced by Microsoft. He believes that Iron Galaxy is not involved in the development.
Iron Galaxy rebooted Killer Instinct in 2013 and reported in 2021 that it was working on a new game. The developer did not confirm that it was Killer Instinct 2, but noted that it would consider an offer to make a sequel.
Microsoft has been looking for a new developer to lead the Killer Instinct franchise since last year.
The 2013 Killer Instinct is available on Xbox One and PC. Three seasons of content were released for the game.