If Retro has only done two failed projects in the 5 years since Tropical Freeze, Nintendo would have shut them down by now, not give them the keys to a marquee project. Maybe Star Fox was the first canned project, but I highly doubt Retro has cancelled two large projects at this point.
Yep, exactly this.
And I agree, even if the Star Fox thing was canned and rumours/dates are mistaken/mixed up, then surely a third entry in the successful DK Returns series would have been given a green light.
I'd love it if Retro came out all guns blazing at E3 "what do you mean what have we been doing for 5 years? Here's a new DK because we love a trilogy, oh and we heard Star Fox needed a good game. Here you go!"
As many have said though... do they have the capacity? Did they really just put a small team on Tropical Freeze Funky Kong mode, or did that team also move onto a new DK Returns title?