Did Nintendo Buy Rare? Unraveling the Complex History of a Gaming Partnership
The simple answer is no, Nintendo never fully bought Rare. While they held a significant stake in the company, they ultimately did not acquire a majority ownership that would classify Rare as a subsidiary. This complex relationship, marked by both incredible success and eventual separation, is a fascinating chapter in gaming history. Let’s delve into the details of Nintendo’s connection with Rare, how it developed, and why it ultimately ended.
A Partnership Forged in 3D Graphics
Rare’s story with Nintendo began in the early 1990s. Their prowess in 3D graphics on the SGI systems caught Nintendo’s attention. In 1994, Nintendo took its first step by acquiring a 25% stake in the company. This investment rapidly increased over time to 49%, solidifying Rare’s position as a second-party developer for Nintendo. This arrangement meant that Rare would develop games exclusively for Nintendo’s platforms but remain an independent entity rather than a fully owned subsidiary.
The Golden Age of Rare and Nintendo
This era was a period of incredible creativity and commercial success for both companies. Rare was responsible for many iconic games that defined the Nintendo 64. Their titles, including the Donkey Kong Country series (on SNES), Banjo-Kazooie, GoldenEye 007, Perfect Dark, and Conker’s Bad Fur Day, were critically acclaimed and commercially successful, becoming beloved classics of that era. Rare’s distinct visual style, inventive gameplay, and technical expertise made them a key partner for Nintendo. The games developed by Rare at this time helped establish the Nintendo 64 as a must-have gaming console.
The Parting of Ways
Despite the hugely successful partnership, the relationship between Nintendo and Rare eventually came to an end. The reason for this separation wasn’t a lack of quality from Rare, but rather a strategic shift by Nintendo. The primary reason cited is that Nintendo was moving away from its reliance on second-party developers. Nintendo’s focus shifted toward investing in its first-party development teams and establishing collaborations with third-party companies directly.
Nintendo’s Shift in Strategy
This strategic change meant that Nintendo was less interested in further integrating with a studio like Rare, even one that had proved its value. Nintendo perceived that the value of the studio was decreasing, as they already had a huge portfolio of established IP and were moving away from that second-party model, even though Rare still had plenty of talent. With Nintendo not willing to pay the amount requested for a full buyout and instead shifting focus, Rare began to seek other options. Ultimately, this led to a buyout from a different gaming giant.
Rare’s Acquisition by Microsoft
In 2002, after several offers, Rare was eventually purchased by Microsoft for a reported $375 million (approximately $548 million in 2021 when adjusted for inflation). This move made Rare a first-party developer for the Xbox console. The loss was a significant one for Nintendo and a major acquisition for Microsoft, gaining one of the best video game developers of the time.
The Impact of the Sale
The sale of Rare marked a significant turning point for both companies. For Nintendo, it was the end of a highly successful partnership, and a loss of significant developing talent. For Microsoft, it gained a valuable studio with a proven track record of creating successful franchises. Rare’s focus shifted to developing games for the Xbox ecosystem. Though their legacy with Nintendo remained significant, it opened the door to new creative avenues as part of the Microsoft family.
What Could Have Been?
The sale of Rare to Microsoft led to much speculation about what could have happened if Nintendo had retained the company. The “what ifs” include the potential for Rare IPs to be integrated into games like Super Smash Bros Melee, with characters such as Banjo Kazooie and James Bond being possibilities. There’s also the possibility of titles like Conker: Live & Reloaded being developed for the GameCube instead of the original Xbox, aligning the remake more closely with the original game’s target audience who may have missed the original release on the late-life N64.
Ultimately, the story of Nintendo and Rare is a reminder of the ever-evolving landscape of the video game industry, where business decisions often shape the future of gaming.
Frequently Asked Questions (FAQs)
Here are 15 related FAQs to further illuminate the relationship between Nintendo and Rare:
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What percentage of Rare did Nintendo own?
Nintendo initially acquired a 25% stake in Rare, which gradually increased to 49% before Rare was sold to Microsoft. -
Why did Nintendo sell their stake in Rare?
Nintendo didn’t sell its stake in Rare. Rather, they did not buy out the studio fully and, thus, Microsoft was able to acquire Rare. Nintendo was shifting its strategy away from second-party developers and focusing on first-party development and third-party partnerships instead. -
Did Nintendo ever own the rights to Rare’s IP?
No, Nintendo only owned the rights to IP they created with Rare, like Donkey Kong. Rare retained ownership of their own original franchises, such as Banjo-Kazooie, Conker, and Perfect Dark. -
What were the most famous games Rare made for Nintendo?
Some of the most famous games include the Donkey Kong Country series, Banjo-Kazooie, GoldenEye 007, Perfect Dark, and Conker’s Bad Fur Day. -
How much did Microsoft pay to buy Rare?
Microsoft bought Rare for $375 million in 2002. -
Is Rare still making games?
Yes, Rare is still active. They are currently owned by Microsoft and have developed games like Sea of Thieves and are working on Everwild. -
Why did Microsoft buy Rare?
Microsoft wanted to secure a high-quality first-party development studio to boost its Xbox platform. Rare had a reputation for creating innovative and popular games. -
Did Rare sell the rights to Donkey Kong to Nintendo?
Rare never owned the full rights to the Donkey Kong IP. They did create and develop the modern iteration and the Donkey Kong Country series. Under the terms of the merger with Microsoft, Nintendo retained the rights to all the Donkey Kong characters. -
What is Rare’s current flagship game?
Rare’s current flagship game is arguably Sea of Thieves, a multiplayer pirate adventure game. -
What was the reason Nintendo did not try to outbid Microsoft when Rare was sold?
Nintendo’s strategy at the time was to move away from second-party developers and invest more in internal development teams. Thus, they did not see the value in the studio that Microsoft did. -
What could have been if Nintendo still owned Rare?
There could have been more Rare characters in Nintendo games like Super Smash Bros, and remakes of games like Conker on Nintendo consoles. -
How does the acquisition of Rare impact Nintendo’s legacy?
The loss of Rare marked the end of a successful partnership. It also highlights a shift in Nintendo’s strategy that focused more on first-party development and third-party partnerships. -
Has Rare made any games that are as popular as its Nintendo titles since being acquired by Microsoft?
Sea of Thieves has become a popular and successful title for Rare under Microsoft, although it doesn’t necessarily reach the same levels as the Nintendo era classics in the collective consciousness. -
What new franchises did Rare create after joining Microsoft?
New franchises that Rare created after joining Microsoft include Sea of Thieves and the upcoming Everwild. -
Is the studio responsible for GoldenEye 007 still owned by Microsoft?
Yes, Rare, the original developer of GoldenEye 007, is still owned by Microsoft. The ownership of the James Bond license, however, has changed multiple times. The game was also recently re-released on Nintendo Switch and Xbox.