Diddy Kong racing on XBOX LIVE ARCADE?

On Rare's home page there is a Q&A section up that was last updated on FEB 28th.  After reading the question I scrolled down to see what Rare's reply would be because it is a good question.  After all, Rare made a lot of hit games for Nintendo so what franchises can they legally work on?  Well according to this it sounds like Microsoft wants Diddy Kong racing as an XBOX LIVE arcade title.

With the (GDC) going on this week I would expect an announcement soon If this can actually happen, legally speaking. 

Dear Rareware:
I am a young video-game player, who also owns a Wii. I am registered on the Nintendo forums and talk about Wii and Diddy Kong Racing DS, awesome game by the way. Anyway one concern I have is the decision if Rareware titles such as Banjo-Kazooie and others will appear on the Virtual Console. I would like to know if possible you could give me an answer, I know you probably don't have an answer, but I'd like to know, as I've yet the chance to play Banjo-Kazooie and Banjo-Tooie as I'm 12, and never owned an Nintendo 64 console. I also would like to say what a great job you did making Diddy Kong Racing DS, again I never got to play the original, so it's nice when titles like these are re-made with new features and gameplay alike. Anyway I hope this question can be answered, and you can continue making great games for Nintendo if possible.
Sincerely,
Steven Schwartz

 

Rare replied with this:

 

This is where we finally edge into territory that could see Scribes neutron bombed from management level. The only Rare-developed title on Virtual Console right now is the original Donkey Kong Country, and unofficially there's a strong likelihood that its sequels will follow. But the Donkey Kong series of games is a Nintendo-owned franchise starring an established Nintendo character, whereas something like Banjo isn't (and even Diddy Kong Racing is less clear-cut), so it's nowhere near as easy to call. Especially when you also consider the existence of Xbox Live Arcade. So right now, the best answer we can offer (for either download service) is "it's possible". I like your sausage casserole mix, by the way.