If these rumors are true, this would be the first game for the studio since the release of Donkey Kong Country: Tropical Freeze in early 2014, though the developer did a large amount of the porting and new content work on the recent Switch re-release. It is called Star Fox: "Grand Prix". But since then, the rumor has started to get some real traction. A racing game that is "Something like Diddy Kong Racing mixed with F-Zero essentially". The user also claimed that the racer may feature gameplay elements like boss fights and a hub world, but it seems that the project's full features are not finalized at this time.
"What Retro Studios is working on is a spinoff based on an existing Nintendo IP that they haven't worked with before...."
Now, while that would usually fill us with a TON of joy, as they could revive the series in a way that Star Fox Zero could not, there's a twist on this tale. While no specific details about the potentially scrapped project were revealed, it allegedly "went through a rocky development cycle".
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Information from Eurogamer's sources has lined up with what was posted online, but the outlet did not confirm Star Fox Grand Prix as an official title. However, it's useful to note that Mario + Rabbids Kingdom Battle was widely chastised when it leaked prior to its proper E3 unveiling.
Furthermore, they also claimed to have heard about Retro Studios working on at least two different projects. Well, if rumors are to be believed, it might be a Star Fox game. And if that's the case, Nintendo is nearly certain to pulled the curtain back on the project at E3 next month.