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Soundwave said:

There's sadly a lot of games we probably missed out on because of the Rare sale.

Banjo-Threeie (GameCube)
Killer Instinct DS or Wii
Conker's Really Bad Fur Day (GameCube or Wii?)
Diddy Kong Racing 2 (Wii?)

Not to mention Retro maybe could've made something else by now because Rare probably would've been put on Donkey Kong Country for Wii and Wii U.

It's a shame. Yes, Rare was on a bit of a decline, but if Nintendo had bought them outright they would've quickly gotten them back into shape.

Retro Studios was a complete and utter disaster and under Nintendo's tutelege they pumped out Metroid Prime as their first game, which is probably one of the best games ever made.

Nintendo can help push a studio and get them back on track very quickly.

With huge Wii/DS sales so many of Rare's IP would've gotten a chance to shine too because Nintendo badly needed games, a Banjo-Kazooie game on Wii for holiday 2008 would've cleared 4-5 million copies easy and we'd still have that franchise around today. As is? It's basically dead. So don't tell me Rare was better off with Microsoft. There's no way. 

Rare's 2nd best sold game was under Microsoft with Kinect Sport.

The problem is that Rare like many developers of the 90's had to adapt to new kind of gamers when 6th and 7th gen hit.

Nintendo has many IPs as well that they really f*cked their fans over with by not realeasing them of straight up butcher their identity. Who could guarantee they wouldn't do the same to Rare's?

Plus, how the hell they would get a new Conker out, when Seavor (Rare creator) didn't/doesn't get along with most Rare folks?