Banjo-Karting or Banjo-Kazoomie was a game prototype for Xbox 360, started by Rare Ltd. just before Banjo-Kazooie: Nuts and Bolts was finished in late 2008. The prototype took advantage of classic Banjo-Kazooie characters and built upon the racing parts of Nuts and Bolts . With Rare’s shift to Kinect projects only, this prototype was cancelled.

One of the cars created specifically for this prototype later made it into the Xbox 360 version of Sonic & Sega All-Stars Racing. Programmer Brendan Gunn has stated in regards to the Banjo karting game, "I've always wanted to do a racing game. I got to spend two weeks working on a prototype racing game for the Xbox. It was codenamed 'Banjo-Kazoomie', and it was a kind of kart racer, but you constructed the karts out of different parts, so I guess it was kind of a precursor to 'Nuts & Bolts '. But for those two weeks I was doing the driving mechanics for it".

George Andreas was also quoted on the Banjo karting game saying, "We had a coin-up for a while, didn't we? Mark [Betteridge] was working on a racing game. Can you remember? It was a long time ago now. The working name was 'Balls-Out', as in flat-out

Banjo-Kazoomie and Banjo-Karting - The Banjo-Kazooie Racing Games