By the looks of things NiGHTS isn't entirely dead. Sega has said a NiGHTS 3 is a possibility and it strongly looks like the original is going to be ported to HD consoles. Perhaps if it sells remarkably well N3 will get greenlighted.

Sonic the Hedghehog (2006) tried it's hardest to kill of the blue hedgehog...

Banjo: Nuts & Bolts may have very well killed off B&K.