Best answer.  Microsoft certainly didn't help matters, but it wasn't completely their fault.

Nintendo NEVER fully owned Rare, they invested in 49% of the company making it a second party developer. Nintendo was offered to buy out Rare but wasn't interested so Rare founders Chris and Tim Stamper sold their 51% share to Microsoft before leaving the company along with many others. Nintendo eventually sold their share to Microsoft... It would have been silly for 2 competing companies to own parts of the same developer.

Nintendo kept their franshises (Donkey Kong & Star Fox) and Microsoft got all the rest

All I know is that Banjo-Tooie, Perfect Dark, Conker's Bad Fur Day and Star Fox Adventures all released just before the buyout, and those are some of the greatest games I have ever played; either on par or greater than their early work, in my opinion. Sure, some long-time employees left the company but to me the quality remained.

It should be noted though that Rare indeed ARE relevant even these days. They even made the XBL Avatars and are making million sellers for the Kinect. As far as we know Rare could have been less relevant these days if Nintendo kept them and their employees kept leaving the company. Microsoft could afford hiring new game developers to replace those who left the company, Nintendo might not have bothered.


Who knows, really?

Actually, the Stamper brothers remained in the company until 2007. They didn't leave until the company was "completely transformed" from what they had created.

Just a minor detail.

simply put. yes.

wht happened is that when MS bought RARE, they didn't let the former owners run the studio, so they left, as did many others.

No, I'd imagine them more relevant than now.

Wow really MS is a-holes. Whats not broken don't fix right? Banjo kazooie was one of the best(includes tooie, and conker) on the 64. You would think the people kno what to do. oh well.

No, they wouldn't. Their down fall began during the Nintendo era; they lost a few key people, and considering the overall quality of their games I think it's pretty obvious they were going down Hill before MS stepped in - at least if you consider the sales of their games.

Make sure facts are straight. As said, the founders, the Stamper brothers, stayed long after the MS buyout. More importantly, the rumors and discussion internally for Rare to be sold started in 2000, and if anyone has ever worked in a company that is looking into changing ownership, that alone will spur people to look for other places to work that may have more stability and can lead to less productivity and some of the "turmoil" you might have seen leading up to the sale to Microsoft.
I think the blame ultimately has to rest on Rare and it's games, but Microsoft could have done more to push the licenses Rare had early on instead of ports and originals. Even if the originals were good, a brand new Conker, Banjo, or Perfect Dark during those later years of the original XBOX could have helped keep the Rare brand front and center in gamers minds. Instead the first Xbox Rare release was Grabbed by the Ghoulies....

i believe their financial situation is better as in the past but about the games, not sure, maybe they would be still like in the past (or at least close to that) and i would really love that.