I'm amazed that to this day there are still people who think MS buying Rare was a good deal (unless you're being sarcastic bdbdbd). Rare has made 2 decent games in 5+ years. Talk about most overrated developer ever.

That is right, but you miss to mention something. Before MS bought the 51 %, Nintendo had the option to buy them themself. After they did not use this option it was clear that they would have sell their 49 % to the new owner aswell.

I'm not sure yet if it really was a good idea to sell rare. Of course it was a bad deal for MS, but if Nintendo had enough money at that moment, i think it was a fault anyway. If they needed the money, the situation is different of course.

 Actually Microsoft did make the move before Nintendo had any say. The Stamper Brothers were in talks with Microsoft back in early 2001. The Stamper Brothers were likely approached after Microsoft's failed attempt to buy Nintendo!

If you remember correctly Microsoft is believed to have tried to aquire Nintendo to build its next-generation system the X-Box. Rumour had it that Nintendo wanted full controll over the platform and its properties if they were to do the deal. Microsoft denied Nintendo that right and Nintendo refused to sell out. Microsoft made it clear they were intrested but Nintendo didn't co-operate.

Within a year of these reports the Stamper brothers were offered an amazing price for their 51% share in the company. The Stamper Brothers reportedly then offered the same deal to Nintendo who many believe didn't think Rare was worth that ammount. After the Stamper Brothers sold their shares Microsoft cancelled all of Nintendo's products and then offered them a sum of over 200-million for the remaining 49% of stock. Nintendo had their arms tied and of course made the deal.

However in this case Microsoft failed to realize you can buy the studio but not the people. Many of the talented Rare employees left right before and soon after the sale. Some went back to Nintendo for internal employement (RetroStudios) , others went on to forms studio's like Zoonami and create games like  TimeSplitters and StarFox:Command. Microsoft was left with just a handfull of the talent they started with, then this year both Stamper Brothers officially left Rare and Microsoft to pursue new careers.

Rare wasn't over rated it was simply an amazing studio. What was over rated was Rare as a brand name. People thought just because the company was Rare that it could make amazing games without the help of Nintendo. Microsoft thought that Rare's titles would convince Nintendo gaming fans to switch sides. In the end Microsoft was sadly mistaken! 

...Have any of you played Viva Pinata yet? If not, I'd keep your mouth shut. It's by far Rare's best game since Goldeneye. And I remember playing Jetpac when it came out.

At any rate, selling off IPs is a mixed bag. Some IPs are nearly useless to their owners, as they have the resources to put more money into bigger and more profitable franchises. However, as a gamer, I miss quite a few franchises that no longer exist (or aren't supported): Ogre Battle, Chrono, Terrangamia Series (Soul Blazer was one of the best SNES games made), Lufia (console versions), Breath of Fire (haven't heard anything about a new once since Dragon Quarter), and others.

These IPs could easily garner a bit of cash IF a developer put enough time and money in them. However, they are always a mystery, which is why the devs aren't supporting them like they should. They can easily profit off of the various games easily by selling games on franchises that aren't going to get a second life.

However, a new company could easily make a bit of cash using a name, a small dev team, and enough ingenuity to revive a franchise. I honestly believe if Mistwaker bought the Chrono series, and gave it their treatment, we could be looking at a Japan 360 saver in and of itself. Plus more than anything, I'd be the first in line to buy it.

Here's hoping that S-E sells off about 10 IPs to Mistwaker and Namco-Bandai :)

Viva Pinata? Sounds kiddy to me...

I think if an IP isn't worth anything to you, ditch it. Use the new cash from the sale to make a new IP that is far more bad ass.

Is that wink because you haven't played VP, or is it because you have and it is made of 100% awesome?

If Microsoft had that much control with 51%, why bother with the other 49, particularly at such a high valuation? Rare's still got a strong staff and has managed to produce 3 games for the 360 thus far. The quality has arguably fallen a bit, but they still produce better games than most studios. I think the thing killing Microsoft on this deal is lack of marketing. They're just releasing games and hoping they'll sell. Perfect Dark at the very least should fit in perfectly, but it merely did okay.