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Thread: The Real Reason Why Nintendo Didnt Buy Rareware

  1. #1
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    The Real Reason Why Nintendo Didnt Buy Rareware

    Although Microsoft was the highest bidder to purchase Rare, Nintendo still had the priority option to purchase the company. To prevent Nintendo from buying Rare, Microsoft raised their bid as high as possible so Nintendo wouldn’t be able to match it.
    Emily Rogers put out a giant piece on the gamecube and this was a quote from it which I found fascinating, basically Microsfot was pissed at Nintendo for not agreeing to buy them and this is how Microsoft wanted to screw them over to try and hurt their stock value.

    I always blamed Nintendo, I think I blamed the wrong company.
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    EDIT: Here is more on the debacle
    “In the end I understand Mr Yamauchi [Nintendo's President] declined to offer more than a fraction of the value Rare was asking; shrewdly, it would seem. Meanwhile Microsoft had a strategic reason to buy, two reasons really: firstly so Nintendo would not have Rare’s games, and secondly so that Microsoft would,” said Hollis

    Nintendo’s George Harrison explained to Electronic Gaming Monthly that Rareware hurt GameCube’s momentum by failing to deliver any games within the launch window. This was compounded by the fact that Rare Ltd. was one of the first studios to receive development kits.

    “…when we launched the GameCube, we put the concentration of our development kits in the hands of only a few people — internally, of course, with Mr. Miyamoto’s EAD team, but also with Rare. And Rare didn’t deliver a single game for us at the launch, when their history had been to make some really great games for us in the past. That hurt us, and it led us into this gap of titles, starting after the launch and lasting for about seven or nine months until Mario Sunshine came out. Consumers want consistency. They would never buy a DVD player that had only one or two good movies a year; they want consistency and variety, and we’re trying hard to make sure that’s not only resolved for the GameCube, but as we go into the next system,” says Harrison

    Harrison’s comments weren’t the first time that Rareware was blamed for hurting GameCube’s momentum. When Nintendo of America’s Jasmine Ramya was asked about why Nintendo was no longer working with Rare, this was the answer given:

    “Although Nintendo doesn’t comment on rumors or speculation by the media, we can tell you that Nintendo has made the decision not to request Rare to make any further exclusive games for the Nintendo GameCube. Although we’re proud of our joint efforts with Rare over the years and have enjoyed our relationship with them, in fiscal year 2001, Rare accounted for only 9.5% of total Nintendo software revenue worldwide. In fiscal year 2002, that number declined to 1.5%. Therefore, in evaluating our investments in developers, as well as the financial benefits to Nintendo over the years, we’ve decided it’s in Nintendo’s best interests to focus on diversifying our portfolio of developers and projects,” said Ramya.

    Both responses seemed unusual for a company that stresses quality over quantity. At the same time, Microsoft had jacked up the bidding price so high that Nintendo would be forced to decline the offer. Employees at Rareware seemed happy with the buyout since Microsoft’s ownership would mean financial stability for the studio. But that financial stability would come at the cost of killing creativity and cancelling projects.
    Last edited by starwarsfan541; 01-08-2014 at 03:15 PM.



  2. #2
    Vicar of Christ Leeroy's Avatar
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    So they bought a company they didn't want just to screw Nintendo and in the process screwed that company as well?


    Dang.
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    Quote Originally Posted by Leeroy View Post
    So they bought a company they didn't want just to screw Nintendo and in the process screwed that company as well?


    Dang.

    Just to have the DK IP...They are really stupid -_- but I hate to see Rare got taken by Microsoft..
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    The ultimate newbie jrb363's Avatar
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    Well you too Microsoft! Go choke on a you rat !!!!
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    Guide Kahhhhyle's Avatar
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    Nintendo could have prevented this? ... Why on earth didnt they save Rare?! For Gamecube sales?!

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    Retro Collector PKUltima's Avatar
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    Quote Originally Posted by Kahhhhyle View Post
    Nintendo could have prevented this? ... Why on earth didnt they save Rare?! For Gamecube sales?!
    $300 million dollars is a lot of money to spend on a game studio, especially back in the early 2000's. Coupled with the fact that RARE wasn't able to get any games out for the launch of the Gamecube, Nintendo wasn't willing to spend such a large amount of money on a studio that they depended on to help get the Gamecube momentum, but didn't deliver.
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    Oh hello there Madmagican's Avatar
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    Soo... Microsoft just wanted to be a dick about things eh?
    I guess that makes sense contextually

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    Retro Collector PKUltima's Avatar
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    Quote Originally Posted by Madmagican View Post
    Soo... Microsoft just wanted to be a dick about things eh?
    I guess that makes sense contextually
    Pretty much. I heard that the reason why Microsoft got into the gaming industry was just to hurt Sony.
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    The ultimate newbie jrb363's Avatar
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    Quote Originally Posted by PKUltima View Post
    Pretty much. I heard that the reason why Microsoft got into the gaming industry was just to hurt Sony.
    Why would they want to hurt Sony? Sony was buying Windows PC licenses but other than that they weren't in competition. That theory makes no sense.

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    Censured mchelski's Avatar
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    Interesting, so gamecube was sold at loss according to this article, btw, what really scares me is that nintendo is known for changing, we are in the third generation (maybe fourth because I don't know exactly much about n64 chip) of one architecture, shouldn't nintendo try something new? (when I say new, I mean it, no x86-64 please)

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    Quote Originally Posted by PKUltima View Post
    $300 million dollars is a lot of money to spend on a game studio, especially back in the early 2000's. Coupled with the fact that RARE wasn't able to get any games out for the launch of the Gamecube, Nintendo wasn't willing to spend such a large amount of money on a studio that they depended on to help get the Gamecube momentum, but didn't deliver.
    But after all the great games and all the money Rare did make for Nintendo? DKC, Banjo, Jet Force Gemini, GoldenEye, Perfect Dark... Even if they didnt help with the launch they were gonna come around eventually...

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    Quote Originally Posted by Kahhhhyle View Post
    But after all the great games and all the money Rare did make for Nintendo? DKC, Banjo, Jet Force Gemini, GoldenEye, Perfect Dark... Even if they didnt help with the launch they were gonna come around eventually...
    With inflation that would be over a half a billion dollars.

    Thats a crap ton of money to lose especially before the wii days

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    Senior Member Magister Ingenia's Avatar
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    Quote Originally Posted by Pikapower0000 View Post
    I'm going to look into buying a tank and taking it to Microsoft Studios.
    Get a Kickstarter going, I'd contribute.
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