Rare: The Full Story
No more rumors.
September 11, 2002 - In past months, UK development studio Rare has been the
subject of a seemingly endless stream of rumors, all of them suggesting the
company would break from Nintendo's wings and possibly join with a new
publisher. Now we have the full story, anonymously confirmed by numerous
credible, high-level insiders. The reports are true. We stake our reputation
on it.
Nintendo, formerly a 49% shareholder in Rare, had the chance to purchase the
company outright nearly a year ago, but refused, according to high-ranking
sources. With Rare software contributions amounting to only 9.5% of total
revenues in Nintendo's fiscal 2001 year, and a miniscule 1.5% in fiscal
2002, the publisher weighed the benefits and drawbacks of making additional
investments in Rare and decided against it.
Rare went on the market. Publishers bid on the company. Activision and
Microsoft were both interested in acquiring Rare, but it was Microsoft who
won out and delivered the asking prices for the developer and Nintendo's 49%
stake in it. Nintendo sold all of its shares in Rare, according to insiders,
and the studio's second-party status was terminated.
The obvious questions then: why all of the secrecy and why haven't Rare,
Nintendo or Microsoft made any announcements? The truth is that the details
have not been finalized. Insiders allege that Nintendo and Rare are still
haggling over licenses, and specifically whether or not Rare will be able to
purchase the properties it worked on under the Nintendo brand, including
Perfect Dark and other trademarks Nintendo holds. Franchises and characters
created and owned by Nintendo, of course, including Donkey Kong, will remain
in Nintendo's control. An official announcement, though, is not far off. The
latest word is that the news will be made public at Microsoft's X02 Europe
event which begins September 24 in Seville, Spain.
Meanwhile, sources indicate that Nintendo plans to utilize some of the money
it made in the selling of its Rare shares to entice other development
studios to make GameCube software, fund new games, and more. The company's
de-emphasized focus on a second-party model and its new partnerships with
Namco, Sega, Capcom and others exemplifies its change in development
philosophy, and leaves no room for an expensive investment in Rare.
Look for much more on this major news as it develops.