Selling off internal IP's (Good/Bad) move!

[Joelcool7]

Shane said:
Microsoft wouldn't have bought 51% of Rare if Nintendo didn't offer the other 49%.

 Actually Microsoft did make the move before Nintendo had any say. The Stamper Brothers were in talks with Microsoft back in early 2001. The Stamper Brothers were likely approached after Microsoft's failed attempt to buy Nintendo!

If you remember correctly Microsoft is believed to have tried to aquire Nintendo to build its next-generation system the X-Box. Rumour had it that Nintendo wanted full controll over the platform and its properties if they were to do the deal. Microsoft denied Nintendo that right and Nintendo refused to sell out. Microsoft made it clear they were intrested but Nintendo didn't co-operate.

Within a year of these reports the Stamper brothers were offered an amazing price for their 51% share in the company. The Stamper Brothers reportedly then offered the same deal to Nintendo who many believe didn't think Rare was worth that ammount. After the Stamper Brothers sold their shares Microsoft cancelled all of Nintendo's products and then offered them a sum of over 200-million for the remaining 49% of stock. Nintendo had their arms tied and of course made the deal.

However in this case Microsoft failed to realize you can buy the studio but not the people. Many of the talented Rare employees left right before and soon after the sale. Some went back to Nintendo for internal employement (RetroStudios) , others went on to forms studio's like Zoonami and create games like  TimeSplitters and StarFox:Command. Microsoft was left with just a handfull of the talent they started with, then this year both Stamper Brothers officially left Rare and Microsoft to pursue new careers.

Rare wasn't over rated it was simply an amazing studio. What was over rated was Rare as a brand name. People thought just because the company was Rare that it could make amazing games without the help of Nintendo. Microsoft thought that Rare's titles would convince Nintendo gaming fans to switch sides. In the end Microsoft was sadly mistaken!