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Wyrdness said:
Considering Nintendo held their hand in development of their games yes, Rare's decline happened because MS don't baby sit them like Nintendo did, look at Retro they've had talent leave but are still able to maintain quality in their games.

That's a misconception, Nintendo never had a hand in great Rare games. They were pretty hands off on their direction and Goldeneye mp is a proof of that.

Their relations started to strain when Nintendo wanted to be more intrusive in their game development. Perfect Dark was the start of it.