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Mensrea said:
I've seen some people in this thread say that by the time Nintendo sold Rare, Rare was already dead. I don't buy that at all. There was still a LOAD of talent at that studio when they were sold. The Viva Pinata series is proof of that. Not to mention the sheer value of all their IP's. Banjo and Conker would be in smash, etc.

If the Stamper Brothers weren't cashing out and retiring then Nintendo might have considered buying Rare.  But as it was, they were getting out of the videogame business.  Nintendo also didn't want to get into a bidding war with the other possible suitors that were willing to buy the Stampers shares for an inflated price.  Plus they probably considered that Rare's highest selling non-Donkey Kong game, which was Goldeneye, was an IP that didn't belong to them and was developed by a team that already left Rare (Free Radical Design).