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makingmusic476 said:
I never understood why Nintendo let Rare wander off and be bought by MS. I'm sure the GC would've been a tad bit more successful if Rare had stayed with Nintendo and Kameo wasn't delayed for years.

Probably because Microsft paid Nintendo some $3 billion for Rare.  Obviously a good move considering Rare hasn't managed to make a successful game since then.  

It's a very diplomatic interview.  He's careful not to spill the beans on any specific details, but it certainly doesn't sound like there is any exclusivity contract or second party status here.  He's pretty specific that their current projects are for the 360, but I wouldn't rule out other systems and handhelds.  

As far as their reasoning, I think it's because they don't want to be tied down to Halo for the rest of their careers.  By this split they have the right to develop what they want rather than what Microsoft tells them to.  They would be bent over desks on Halo 4 right now if they hadn't done this.  What they bought back was their creative freedom.  Who knows what they will be developing for from now on, but I'm sure this is a huge relief for the studio to have that creative freedom back.