Nintendo announces it has sold its 49 percent ownership position in Rare, Ltd.

[PunchDave]

This official press release mentions nothing about Nintendo retaining the rights to Conker, Perfect Dark, or Kameo.

Press Release: Nintendo Cuts Development Ties with Rare, Ltd.
Press Release Source: Nintendo of America

Nintendo Cuts Development Ties with Rare, Ltd.
Decision Reflects Strategic Move To Expand And Redirect Game Development
Friday September 20, 1:36 pm ET


LONDON--(BUSINESS WIRE)--Sept. 20, 2002--As part of a strategic redirection of its game development investments, Nintendo announces it has sold its 49 percent ownership position in U.K.-based developer Rare, Ltd.
"Nintendo had the ability to continue its exclusive relationship with Rare, but in looking at the company's recent track record, it became clear that its value to the future of Nintendo would be limited," says Peter MacDougall, executive vice president, sales and marketing, Nintendo of America. "In other words, we passed on this opportunity for very good business reasons."

In fiscal year 2001, Rare accounted for only 9.5 percent of total Nintendo software sales worldwide. In fiscal year 2002, that number declined to 1.5 percent.

Nintendo will retain exclusive rights for all original properties and franchises featured in games developed by Rare, including Donkey Kong®, Diddy Kong® and Star Fox®.

According to MacDougall, game development is, by nature, dynamic. Relationships continually change to meet the needs of both manufacturers and publishers. "The disposition of this investment leaves us in a position to become even more aggressive in expanding our development capacity, both internally and externally. Aside from several partnerships already announced over the past year, we are currently in similar talks with several other prospective partners around the world."

In the past year, Nintendo has added emphasis on games which offer true innovation to video game players, and especially those with appeal to older players. Key current and upcoming NINTENDO GAMECUBE(TM) titles include Eternal Darkness: Sanity's Requiem(TM), Animal Crossing(TM), Metroid® Prime, The Legend of Zelda® and Capcom's upcoming Resident Evil series exclusively for NINTENDO GAMECUBE.

"Although we declined the opportunity to continue our exclusive agreement with Rare, this announcement does not diminish our respect for their work or the past contributions they have made to Nintendo," adds MacDougall.

As the worldwide leader and innovator in the creation of interactive entertainment, Nintendo Co. Ltd., of Kyoto, Japan, manufactures and markets hardware and software for its popular home video game systems. The systems include Game Boy®, Nintendo® 64, Game Boy Advance and NINTENDO GAMECUBE. Since the release of its first home video game system in 1983, Nintendo has sold more than 1.6 billion video games worldwide, creating enduring industry icons such as Mario(TM) and Donkey Kong® and launching such franchises as Zelda(TM) and Pokemon®. As a wholly owned subsidiary, Nintendo of America Inc., based in Redmond, Wash., serves as headquarters for Nintendo's operations in the Western Hemisphere.

For more information about NINTENDO GAMECUBE or any other Nintendo product visit the company's Web sites, Hidden Content or Hidden Content

[SiNCeRe]

Now the question is who did they sell there share to...But we all know that answer right Hidden Content

[Shadow Fox]

Originally posted by SiNCeRe
Now the question is who did they sell there share to...But we all know that answer right Hidden Content

Well, let's wait and see what Rare (or Microsoft) says in upcoming PR.

Keep in mind, though; Rare can buy it's own share back and become an independent 3rd-party devver (as Left-Field Studios did as of recent). Though highly unlikely IMO, this could actually be the case for all we know...

-Official Ninja of XboxAddict

[BeanKenzaki]

Hm.......become 2nd party to microsoft



or two become 3rd party and grab more money as well as work with multiple consoles.....or perhaps..::shudders:: become a console maker. pff ya right....

[GokuX]

Originally posted by BeanKenzaki
or perhaps..::shudders:: become a console maker. pff ya right....

Don't speak of such things round here...hehe.

[SiNCeRe]

Microsoft buys game developer Rare


By David Becker
Staff Writer, CNET News.com
September 20, 2002, 12:42 PM PT


update Microsoft has acquired British game developer Rare, a Nintendo executive confirmed on Friday.
Nintendo said in a statement that it has sold its 49 percent interest in Rare--developer of games based on popular Nintendo franchises such as Donkey Kong--but declined to name the buyer or price.

But Peter MacDougall, executive vice president at Nintendo of America, confirmed to CNET New.com that the sale was part of Rare's acquisition by Microsoft, which now owns Nintendo's 49 percent stake and Rare's majority share. "The entire company has been sold to Microsoft," he said.



Microsoft has not announced the Rare purchase, and a company representative declined to comment on the deal, which has been the subject of numerous reports estimating the buy at anywhere from $400 million to $540 million.

Schelley Olhava, an analyst for research firm IDC, said the type of family-friendly games Rare creates are exactly what Microsoft needs to broaden the appeal of the Xbox beyond hardcore gamers.

"They need to get into the mass market," she said. "Rare has a reputation for developing very solid, high-quality franchises, something that's been really lacking for the Xbox...Rare is very good at developing characters; they made Donkey Kong what it is today."

Nintendo minimized the effect of the sale, saying Rare-developed titles only accounted for 1.5 percent of Nintendo's worldwide software sales during the 2002 fiscal year. "Looking at the company's recent track record, it became clear that its value to the future of Nintendo would be limited," MacDougall said in the statement. "In other words, we passed on this opportunity for very good business reasons."

Nintendo said it will retain all rights to Rare franchises such as Donkey Kong, Star Fox and Diddy Kong. "Those properties are still owned by Nintendo, and we will continue to make new games based on them," MacDougall told News.com.

P.J. McNealy, an analyst for research firm Gartner, said that will mean a delayed payoff for Microsoft.

"It's a much less appealing deal for Microsoft without the Donkey Kong franchise," he said. "It makes it more of a long-term investment. It's possible the goal is really to build up a portfolio for the later years of the Xbox, when they're going to need to appeal to the kiddie market even more."

My guess is that Microsoft will announce it later today or Europe X02 Hidden Content

[PunchDave]

Originally posted by BeanKenzaki
Hm.......become 2nd party to microsoft



or two become 3rd party and grab more money as well as work with multiple consoles.....or perhaps..::shudders:: become a console maker. pff ya right....

Rares doing none of the above.

More like becoming 1st party.... because Microsoft owns Rare 100 percent.

[Goku_69]

I didn't see anything in there about Killer Instinct is it possible we see it on the box?Hidden Content

[PunchDave]

Originally posted by Goku_69
I didn't see anything in there about Killer Instinct is it possible we see it on the box?Hidden Content

I don't know about Killer Instinct, but we're going to see "Perfect Dark," "Conker" and "Banjo-Kazooie" on Xbox.

Rare, though, will retain rights to the characters it created independently, including the "Perfect Dark," "Conker" and "Banjo-Kazooie" franchises. "Perfect Dark" sold more than 1 million copies (earning more than $55 million), and will likely make its way to the Xbox. Banjo-Kazooie and Conker games are also likely.

Wow, I didn't think Rare would keep Banjo-Kazooie
You want a link you say? Hidden Content

[Shadow Fox]

Originally posted by PunchDave



I don't know about Killer Instinct, but we're going to see "Perfect Dark," "Conker" and "Banjo-Kazooie" on Xbox.



Wow, I didn't think Rare would keep Banjo-Kazooie
You want a link you say? Hidden Content

What I don't understand is, why George Harrison is being quoted for saying the stock was sold. From what I understand, he wasn't even present for the press release...Hidden Content

Anyone got anymore info on this?

-Official Ninja of XboxAddict

[SiNCeRe]

Originally posted by Shadow Fox
What I don't understand, is why George Harrison is being quoted for saying the stock was sold. From what I understand, he wasn't even present for the press release...Hidden Content

Anyone got anymore info on thsi?

-Official Ninja of XboxAddict

And how do you know he wasn't present at press release Hidden Content

We'll have to wait till next week to get more info. Hidden Content

[PunchDave]

Planetgamecube says the same thing, Rare keeps Banjo-Kazooie, Conker, and PD.

Hidden Content

News Article: Rare keeps certain licenses
News Date: 09/20/2002
Kiss Banjo-Kazooie, Conker, and Miss Dark good-bye. You will no longer see new games with these characters on Nintendo systems.

We posted the press release about Nintendo "dropping" Rare a little earlier today, but we've learned some additional news from our inside sources that the press release seemingly left out.

Rare will retain the rights to Banjo Kazooie, Conker, and Perfect Dark. You will no longer see new games with these licenses on Nintendo systems. Rare owns these licenses.

So what happens to the GBA games? Our sources say that the games like Diddy Kong Pilot, and Donkey Kong Coconut Crackers will be released by Nintendo. Banjo Kazooie and Sabre Wulf will not be joining the released titles.

We should have more news on this in the next couple of days.

[GunstarGC]

Originally posted by Goku_69
I didn't see anything in there about Killer Instinct is it possible we see it on the box?Hidden Content

um no, Nintendo published that game so it's there's. How many times do i have to tell people that? But you still get PDX.

[Shadow Fox]

Originally posted by GunstarGC

um no, Nintendo published that game so it's there's. How many times do i have to tell people that? But you still get PDX.

The big question is, what's up with Kameo? Apparently it is still underway for the Cube, but will it remain exclusive? If you listen to recent reports, they mention SFA as the last exclusive, but if Rare doesn't port the game to Xbox/PS2/whatever, this could stretch the truth...not to mention the 4 GBA games they are shipping this year.

-Official Ninja of XboxAddict

[SiNCeRe]

Originally posted by Shadow Fox
The big question is, what's up with Kameo? Apparently it is still underway for the Cube, but will it remain exclusive? If you listen to recent reports, they mention SFA as the last exclusive, but if Rare doesn't port the game to Xbox/PS2/whatever, this could stretch the truth...not to mention the 4 GBA games they are shipping this year.

-Official Ninja of XboxAddict

My guess is they'll port it to xbox. I don't think Microsoft will allow Rare to release a Nintendo game. But you never know. Microsoft going to develop for GBA..sooo I guess there could be a chance. We'll find out this week. Hidden Content

[X-Factor]

The great thing is, Microsoft owns Rare outright (100%, completely). So that would make Rare a first party developer for Xbox; Banjo-Kazooie, Conker and Perfect Dark are all licensed under Rare (in other words, they own the rights to all of the above named franchises).

So while Nintendo owned 49% of Rare (before they sold their share/ownership in Rare back to Rare), Microsoft has outright bought Rare, which means they own 100% stock in Rare.

That's just what I've gotten from all the reports across the net...