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TruckOSaurus said:
Maybe the desire from both Rare and Nintendo to best each other is what made their N64 games so good.

This makes the most sense to me. I think both Nintendo and Rare benefited from the relationship, and the N64 library was bolstered by friendly competition.

That being said, if Nintendo were to be envious of a game studio, it might as well be Rare 1994-2001. I can't think of another studio, outside of EAD, that has had a better run.