The way Nintendo acts with racing games these days not named Mario Kart, I don't think they mind not being able to release Diddy Kong Racing. Heck, technically they have already 'borrowed' the multiple vehicle for different terrain mechanic at this point. And another kart game that reminds people about how much fun a battle mode can be when properly implemented will just get on someone's nerves over there at EAD.

Their output during the N64 era was absolutely amazing. They filled in the gaps inbetween the big Nintendo titles along with Iguana and Factor 5. However by the time Perfect Dark had finally come out, most of the original team had long departed the company, although their work on games-in-progress still remained such as Conkers Bad Fur Day etc. They were an amazing studio with an indie spirit and work structure, which is what made them unique.

They can easily replace those characters easily as DKR is their property.

Actually, working with MS is not that difficult as Phil Spencer said he would allow Banjo in Smash (fan request) if Nintendo wanted.

I suggest doing some research before posting because quite a lot of you are factually incorrect.

A few lead developers left during perfect dark, but rare still went on to release star fox adventures and conquers bad fur day.

When Nintendo didn't make any moves to become a majority owner of Rare, and was no longer giving Rare an unlimited development budget to work with, they began looking around for someone to purchase the company. It wasn't until formal discussion between Rare and Activision, and Rare and Microsoft started that made 30 employees jump ship (from a development team of around ~200). Rare wasn't dying before they were purchased, and they still had a tremendous amount of talent still around at the time. But here, have this

Nintendo Era:
Donkey Kong Country 1
Donkey Kong Country 2
Donkey Kong Country 3
Killer Instinct
GoldenEye 007
Didn't Kong Racing
Banjo-Kazooie
Banjo-Tooie
Perfect Dark
DK64
Conkers Bad Fur Day
Star Fox Adventures

Microsoft era:
Grabbed By The Ghoulies
Conker: Live & Reloaded (a remake of the original)
Perfect Dark: Zero
Kameo: Elements of Power
Viva Piñata (after this, the founders left.)
Viva Piñata: Trouble In Paradise
Banjo-Kazooie: Nuts & Bolts
Kinect Sports
Kinect Sports: Season 2
Kinect Sports: Rivals (after this, 15 people laid off)
Rare Replay (a compilation of games that were made while NOT under Microsoft lol)
Sea of Thieves

*Lists are not comprehensive and only include at least somewhat notable titles.

It's obvious to me that Rare was doing way better before Microsoft. Under Microsoft, their most successful title has been a Kinect game. With that in mind, how much of a cult following do the games from the first list have vs the latter? Which ones do people post about with fond memories? I see people reminisc on the old Rare games all the time. I don't remember ever seeing anyone talk about how much they miss viva piñata or grabbed by the Ghoulies. On top of the lack of a hit over the past 15 years, they were creatively constrained, marketed poorly and this eventually culminated in being banished to Kinect only titles.

Sea of Thieves will be their first real game in some time. This could mark a comeback, I think the game looks interesting but that's purely speculation for now. It's almost objective that rare was in an all around better spot while they worked with Nintendo. Almost. But opinions are like assholes.

Sure opinions are like a**holes and yours are gaped and everything is falling through unfiltered.

Rare Replay (a compilation of games that were made while NOT under Microsoft lol)

- You recommended to research before posting factually incorrect. It looks like 7 of Rare Replay games were made under MS tutelage, a little research would've prevented your factually incorrect post. LOL

On top of the lack of a hit over the past 15 years, they were creatively constrained, marketed poorly and this eventually culminated in being banished to Kinect only titles.

- Kinect Sport is their second best selling title, so much for no hit in 15 years. Rare was tasked to create games to push Kinect because they were still talented even after mass exodus over the years. They did it exceptionally.

Viva Pinata probably would've made a *killing* on the Wii if Nintendo had backed it with their marketing muscle.

Rare missing out on the Wii/DS era was a huge kick in the balls for them, they probably would have done great that generation with Nintendo behind them. 

Given the amazing work Nintendo did turning Retro into such an amazing studio, I have no doubt they would have handled Rare a lot better than... who was it, again? You mean that company that destroyed one of the best RTS developers ever?

Anyway, point is that Nintendo has the best track record in the industry when it comes to handling their own studios.

There's also that a lot of Rare's IP would be much more relevant today.

Banjo-Kazooie, Perfect Dark, Killer Instinct, Conker, Viva Pinata, Diddy Kong all would've done decent to great on the Wii.

Remember in fall 2008 when the Wii was red, red hot and everyone was dying for games but Nintendo could only deliver Animal Crossing: City Folk and Wii Music that holiday?

Imagine Rare had a Perfect Dark or Banjo-Kazooie game to sell for Wii that holiday. They would've sold a shit ton, and likely those IP would still be around today instead of floundering into retirement/irrelevance.

Say what you want about Nintendo but they are quite good at keeping IP relevant, even decades old ones.