Where are people getting this? Nintendo owns the rights to Killer Instinct.

It would take a miracle for this to come to fruition.

I think Scorpion will be apart of a secret fight like MK1 Reptile. I can't picture him being on the roster though. Especially with NRS taking so many liberties to be different from MK.

I didn't actually remember that wholly but now that I read about it: Nintendo and Rare are supposed to own rights of it. Nintendo hasn't done anything with the series ever since Killer Instinct Gold, not even used them in cameos as far as I'm concerned, so a turn of events is viable much like Rareware's buyout, however. Even then, it doesn't seem like the foremost thing to happen at this point. There's an interesting article about KI.