Hrmm, yes, the divorce of Rare and Nintendo could get messy. All those characters they've shared over the years. And don't expect me to believe that Nintendo actually originated the ideas of Diddy Kong, Banjo-Kazooie, and Conker. It might get ugly determining who actually has the rights to all those characters.
Of course, if Nintendo is planning on falling out of the console market in the next generation, this could lead to a beautiful marriage between Nintendo and MS. Think about it. Nintendo and Microsoft own practically all of Rare. If Rare made games for both companies, they'd stand to profit greatly. I'm sure they could work something out. Nintendo has alot to lose if Rare ceases to make games for them. And since Nintendo owns most of the characters from Rare games, Microsoft would lose out on some of Rare's most profitable aspects. A co-development agreement would be advantageous for both companies.
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