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Jon-Erich said:

What do you mean they gave them no creative freedom? Under Nintendo's reign, Rare operated mostly as an independent company. For example, when Nintendo had lost interest in continuing with Goldeneye, the staff at Rare continued working on the game anyway. Nintendo's role within Rare was mostly giving creative suggestions and to handle marketing. There were times when Nintendo had requested that Rare add or remove something from their games, but Nintendo never told Rare what games they could or could not do. 

Well actually Nintendo did, Games like DK64 was one of them and so was Star Fox Adventures that turned what looked to be a new promising IP in Dinosaur Planet and become a forced marketed Star Fox game which changed and ruined the game we were all promised in the magazines. Nintendo is not as innocent as many like to believe. They weren't looking after Rare at there end of there reign with Nintendo, and Rare weren't getting what they needed anymore and its clear with the link I provided that Rare was looking elsewhere, basically wanting out.

I love Nintendo and there a very smart and passionate company but Rare's downfall was happening internally while under Nintendo not under MS, MS was just letting them do what they do, and after awhile when it wasn't working they shuffled them to Kinect which is where Rare found mild success.

Lets all be thankful that Activison didn't purchase Rare. We can all imagine how that would have turned out.