I think Nintendo should hold out until a compromise is reached which would allow most of, if not all, of Rare's back catalogue to be released on the VC. This would include obvious choices like Goldeneye and Banjo-Kazooie, but also other classics like Battletoads, Snake Rattle and Roll, R.C. Pro-Am on the NES for example.

I mean, just look at this HUGE library of quality games that we'd probably never get to see on the VC or XBLA due to Rare no longer being part of Nintendo and all kinds of licensing issues as well...

http://en.wikipedia.org/wiki/List_of_Rare_games

Edit:  HOLY FUCK... I just went through that entire list and realised that I own 22 OF THOSE GAMES!!!  That's insane... I knew Rare was a huge part of my gaming library but DAMN!!!

I simply think Nintendo is pissed that this game has to go to both when it never did. And I also think they are pissed that if it did have to go to both that they got no say in the production of it. Nintendo obviously has a lot to be pissed about. I think I'm sold that this is a very one sided story. What the fuck is Rare doing producing this title when they have no ties back to this game? They sold the licenses years ago. If Activision sourced them and MS out to develop it for VC and XBLA why wasn't Nintendo involved in the process? These are the questions we need answered before judgment can be passed.

I just hope they can come to an agreement. Opposite of what DMJ and bardicverse said, i do want this game to come out. One of my favorites. RARE was such a great company....i miss their games (Conquer's BFD, killer instinct, Banjo's, 007...) ='(

 Why should they settle for anything less than what Microsoft would get? They own the rights, and have no interest in doing anything to benefit Microsoft. Getting a bone thrown to you is not always enough. Supposing this story is true (and I have my doubts) I would say Nintendo is well within their rights to refuse to go into any deal that does not give them an equivalent product for their own service. If Microsoft is unwilling to accept an equivalent game being put on a competitors platform, why should Nintendo accept a superior game being released?

I have 13.

The problem with that is that the gpu in the Wii can't do hardware shaders.

good idea

Why should they settle for less? Because they didn't fund any development. Anything they get is a plus for them since they didn't throw any money into the pot. If they want an enhanced version made for their console, they should take some of the massive profits they are making on the Wii and pay for some of the development required to get an enhanced version made for the Wii.

 They didn't fund, but that is irrelevant. Microsoft undertook the project on their own, so they decided to take the cost on themselves. If Microsoft wants to make Nintendo sign over a product, they need to go the extra mile. There is no benefit in it for them to give the 360 a superior version. It is all about who is in the position of power. Nintendo is in that position. As such the only thing that matters is what benefits them the most. Nintendo is under no obligation to release the game at all, and it is detrimental for them to release it on a competitors system. It is ludicrous to even think they should willingly give someone else a better version of a game they own the rights to. You want to game on your system then asking for an equivalent product is being nice about it. They are well within their rights to ask for the superior version.

Give? They didn't do any work to make the version superior and their weaker system might not even be able to handle the enhanced version. Really, if this deal went down as is microsoft would end up with an enhanced version (which they put money into to develope) and Nintendo would be able to sell the standard version of the game (while not having to pay any developmental cost). Thus both would get to sell something; unlike now, where neither make any money off of a product that is ready to be sold.