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After reading the article it seems that Microsoft wasn't the real villain after all. Rare was coming up with great ideas, but they were taking so long to get there. That other studios both inside and outside of Microsoft were beating them to the market. You can understand why Microsoft wouldn't want genre overload. Just about every concept that was mentioned in the article seems to have been something that somebody else had already done, or worse something that everybody else was doing at the time.

You can't blame Microsoft for not wanting another exclusive shooter franchise, or a franchise that would actually compete with Fable, or another survival horror game when they already have half a dozen on the platform. Hell you can see why they wouldn't want a nature simulator. When both Sony and Nintendo had very similar games. It just goes to show you that there aren't rewards for being second. Had they gotten those ideas out sooner. Those games would have probably made it into the market. They could have been originators, but ended up being total overkill.

On a more positive note. It seems like they have a process of elimination going for them. Eventually they will find their core franchise, or they will find genres that nobody else is going to contest. I know it may seem like pure blasphemy to say it, but maybe Rares destiny to become the premier space shooter developer, or the developer that makes gritty role playing games for the Xbox.