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Rogerioandrade said:
I don´t think Rare´s situation is Nintendo´s fault.
The previous Rare owners were too impressed with the enormous ammount of money MS offered for the company to turn it down . Nintendo couldn´t, at that time, match that offer, for whatever reason they had.
And they wouldn´t share the developer with a rival company.

Nintendo was offered the company before the Stamper brothers looked elsewhere. They could've bought it for a reasonable amount of money before the auction between MS and Activision.