Wii U's main graphical disadvantage is the lack of a studio like Naughty Dog or Santa Monica

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Soundwave said:

Nintendo sold Rare and stopped working with Factor 5. I would say that's called "cutting ties".

In the N64 days and the GameCube launch, certainly, people looked at Rare and Factor 5 to deliver the hardware showcase titles visually in the way Naughty Dog does today for the PS3.

Rare in its hey day was basically to Nintendo consoles what Naughty Dog is to the PS3 today, probably bigger actually.

What you wrote are half truths, Nintendo was not interested in purchase of RARE at once so the founders of Rare looked elsewhere, and after M$ offer they sell their stake in the company.

Factor5 as SK was disgusted by Wii so they left Nintendo.