EdStation3 said:
They gained those by offering limitless storage capacity over its competition...kind of like how today the....oh nevermind. Microsoft just sneaks up on Rare, takes a majority ownership and then leaves Nintendo with minority and forces them to sell there shares. |
What the hell are you talking about? Nintendo was given the opportunity to buy the remaining portion of Rare and chose not to. Then Microsoft came along and bought 100% of Rare including Nintendo's share. There was no "leaving Nintendo with minority and forcing them to sell there shares".
http://www.gamecubicle.com/news-nintendo_rare_microsoft_official.htm
"With Rare founders Chris and Tim Stamper seeking an exit strategy and Rare's exclusivity contract complete, Nintendo was given the option of buying the remaining un-owned portion of Rare. Nintendo declined. Instead, Nintendo received $183m from Microsoft for its position. According to Peter MacDougall, Executive VP of Sales and Marketing with Nintendo of America, "Nintendo had the ability to continue its exclusive relationship with Rare, but in looking at the company's recent track record, it became clear that its value to the future of Nintendo would be limited... In other words, we passed on this opportunity for very good business reasons."
It's expected that Nintendo will use the cash from the deal to invest in smaller development houses and expand relationships with larger developers as they have in the past with Namco and Sega. MacDougal states, "The disposition of this investment leaves us in a position to become even more aggressive in expanding our development capacity, both internally and externally. Aside from several partnerships already announced over the past year, we are currently in similar talks with several other prospective partners around the world." Nintendo is also quick to note that Rare contributed 9.5% to Nintendo's unit sales in the 2001 transition year and just 1.5% in fiscal 2002."
Essay Pro