**The Official 'Microsoft Owns Rare' Thread**
Following up our story today on Left Field Productions leaving Nintendo's group of developers, a spokesman for the Japanese company said yesterday that Nintendo is willing to sell off the 49 percent stake they own of British developer Rare Ltd. The announcement was reported by the Bloomberg news service early this morning, which quoted Nintendo spokesman Yasuhiro Minagawa as saying "we may consider selling the shares we have." Nintendo thoroughly denied the Bloomberg report today, calling it a little hasty. According to a statement received by Dow Jones Business News from another Nintendo spokesman, the company would only consider the Rare issue if Rare or Microsoft (its current suitor) contacted them about it. Which they haven't yet, apparently.
As the Los Angeles Times reported earlier today, Microsoft is very interested in purchasing the developer of Perfect Dark, the Donkey Kong Country series and (more recently) Star Fox Adventures. The company would likely turn Rare into an Xbox-only developer to help them produce more exclusive titles (heaven knows they need some). The only catch is the 49 percent of Rare that Nintendo still owns--a stake which, judging from this new statement, isn't all that precious to Nintendo after all.
Online sources have already stated that the Microsoft-Rare deal is done and set to be officially announced at Microsoft's X02 conference later this month. The only question is what'll happen to Perfect Dark, Banjo-Kazooie and Rare's other original game titles--it's a little unclear right now who owns the rights to those names.
Things are happening very fast, as you can see, so be sure to visit GamePro.com regularly to catch the latest news.
GamePro.com News
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Although Nintendo doesn't comment on rumors or speculation by the media, we can tell you that Nintendo has made the decision not to request Rare to make any further exclusive games for the Nintendo GameCube. Although we're proud of our joint efforts with Rare over the years and have enjoyed our relationship with them, in fiscal year 2001, Rare accounted for only 9.5% of total Nintendo software revenue worldwide. In fiscal year 2002, that number declined to 1.5%. Therefore, in evaluating our investments in developers, as well as the financial benefits to Nintendo over the years, we've decided it's in Nintendo's best interests to focus on diversifying our portfolio of developers and projects.
Star Fox Adventures, which was jointly developed by Rare and Nintendo, will launch as scheduled on September 23rd and will remain exclusive to the Nintendo GameCube. Nintendo's other great franchise characters such as Donkey Kong also will remain exclusive to Nintendo.
We have no additional details to share on this issue at this time. Be sure to check out our official website (www.nintendo.com) for the latest information as it becomes available.
http://www.planetgamecube.com/news.cfm?action=item&id=3396
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Game. Set. Match. Xbox... :)
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TOKYO (CBS.MW) -- Nintendo said Thursday that it might consider selling its stake in U.K. game developer Rare to any potential suitor, including Microsoft, which is said to be eyeing the company.
"Rare is one of our subsidiaries, but its contribution to our overall sales is only about 1.5 percent now and the ratio is declining," said Yasuhiro Minagawa, a spokesperson from Nintendo (NTDOY: news, chart, profile) which owns a 49 percent stake in Rare.
"We might consider selling Rare stakes if approached by Microsoft... or others. But even if we decide to sell the company, it won't cause any changes to our business at all," he said.
But Minagawa said he wasn't aware of any talks between Nintendo and Microsoft about the matter.
The Los Angeles Times reported that Microsoft is in talks to purchase Rare. An acquisition would be a plus for Redmond, Wash.-based Microsoft, which entered the $20 billion global video game market with its Xbox game console last year.
Microsoft officials were not immediately available for comment.
The U.K.-based Rare, started by brothers Tim and Chris Stamper, has created popular titles such as "Donkey Kong Country," and "Perfect Dark," which are made exclusively for Nintendo game systems.
Nintendo's shares (JP:7974: news, chart, profile) jumped 370 yen, or 2.6 percent, to close at 14,380 yen in Tokyo.
http://cbs.marketwatch.com/news/story.asp?guid=%7B1DF838A4%2D01B4%2D482A%2DBD16%2D705AAF1FA9B9%7D&siteid=mktw
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