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"The Rare Factor"

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Fri 09/08/02 at 20:05
Regular
Posts: 787
Another day, another snippet of news from everyone’s favourite third party developer (if you’re an Nintendo fan at least) – Rare. This time comes the news that two prospective Gamecube and GBA releases, Donkey Kong Racing and Donkey Kong: Coconut Crackers have been struck of future release schedules, possibly forever. Which begs the question, have Rare finally bitten the bullet and cut their ties with Nintendo? If they have, then this causes repercussions that will reverberate all around the gaming world. This post will examine the potential effects that Rare ‘going solo’ would have, not only on Gamecube and Nintendo, but on the dynamics of the industry as a whole.

About a year ago now, Sega were struggling. Sales of the Dreamcast were slipping, despite arguably one of the best software line-ups of any console ever. Money spent on advertising was reaping fruitless rewards, their killer app, RPG/action adventure hybrid Shenmue was not widely accepted as they hoped it would, especially in comparison to Square’s flagship franchise Final Fantasy, and with the Playstation 2 on the horizon (not to mention Microsoft and Nintendo’s efforts) the future was anything but rosy. But with one decision, their fortunes changed. By deciding to cease production of Dreamcast and switching to software production only, overnight Sega went from a struggling company to one of the hottest commodities in the industry – every major console player wanted Sega games to grace their console, and there was speculation of a Microsoft takeover. It didn’t materialise, but in one swift move Sega’s share price rocketed and their fortunes took a turn for the better.

The point of that little history lesson was to make certain comparisons between Rare and Sega. Sure, Rare aren’t in the console business, and they certainly aren’t struggling, but Rare could too make the transition that Sega could. From being restricted to Nintendo only, if Rare went multiformat they could become even bigger players in the industry, not to mention tripling their games sales, and ultimately revenue – an attractive proposition for any company. As has been well documented, the days of exclusive games are practically over –despite a few ties, most developers understand the financial benefits at least of making their games appearing on all consoles.

How will Rare going multi-format affect Nintendo? Arguably, Rare saved the N64. With the long droughts between major releases and a lack of major third party support due to the high cost of cartridges, Rare’s games kept the ’64 afloat – Banjo Kazooie, Conker, Blast Corps (well, maybe not that), Perfect Dark, Goldeneye, DK64, etc. Nintendo owe Rare a lot – without those games their place in the industry might have been under threat, and despite the part-ownership element, Rare could have made a lot more money than they did from multiformat releases. Miyamoto has also made his appreciation of them clear, citing when asked about his favourite developer (bar Nintendo of course) as Rare, saying they make “very good games”.

But now? Well, there is only one release on the way – Starfox Adventures, which seems to have been an age in development. Kameo hasn’t been seen since two Spaceworlds ago, and the aforementioned DK games have both been struck off release dates. The mischievous, and now infamous, Christmas card could have been an indicator of their discontent, maybe Nintendo are restricting their creative licence - who knows what goes on behind the scenes. Perhaps any potential animosity might arise from the fact that Nintendo have lazily farmed out old franchises, in this case the Starfox crew, to Rare rather than let them stick with the Dinosaur Planet ones. I may be clutching at straws here, but it is valid nonetheless. Also, Nintendo aren’t as dependent on Rare anymore – they have the support of Square and Resident Evil franchise, not to mention their new philosophy.

But let’s look at another perspective. Sure, it can be argued that Nintendo might not be able to live without Rare, but think of it this way –can Rare live without Nintendo? Some of Rare’s most popular games have been from the Nintendo ‘stable’, whilst some of Rare’s own creations – Blast Corps, Jet Force Gemini haven’t been as successful. It can be argued that, FPSs aside, games featuring more established characters have done better. Plus, Nintendo have been very patient in allowing Rare to take as much time as possible when creating games – others might not be so understanding.

Would a Rare multi-format decision hurt Gamecube? Probably. Would it bother Nintendo? Maybe, but they always maintain that they don’t pressurise anyone else to make games for their console. Whatever transpires, in this industry of card games, Rare hold a powerful hand, and what they do with it could determine who wins the game (what a dodgy analogy).

Thank you and goodnight.
Sun 11/08/02 at 20:44
Regular
"Peace Respect Punk"
Posts: 8,069
Gollum wrote:
> Dringo, I would love to know where you get this information from.
> Tell us!
> As I am aware, Rareware still states an ownership of 25% for
> Nintendo.
> Check their site.


Do you know how often Rare's site is updated...? Even if it has been updated recently I doubt updating shares information is at the top of their agenda...
Sun 11/08/02 at 20:05
Regular
Posts: 18,185
Gollum wrote:

>
> Dringo, I would love to know where you get this information from.
> Tell us!
> As I am aware, Rareware still states an ownership of 25% for
> Nintendo.
> Check their site.

EVERYWHERE, n-philes and Raretopia to name a few, yes they did buy 25% but due to expansion that has risen. Read this topic in the Nintendo forum someone has quoted the information.
Sun 11/08/02 at 19:10
Regular
"Nasty Fat Hobbit!"
Posts: 1,193
Dringo wrote:
> Right to put all this to rest, who owns what of Rare, remember
> Nintendo own enough to have a fairly large contribution to what goes
> on:
>
> Right Nintendo did buy 25% of shares but since the company grew so did
> the amount of shares, it is offical this is what is owned by who:
>
> Rareware Ltd. is the majority shareholder (52%) and is owned and run
> by Chris and Tim Stamper. Rare Acquisition Inc. (37.8%) is owned by
> Nintendo Co. Ltd. and is represented by ex-NOA executive Howard
> Lincoln. The third partner is Rare Coin-It Inc. (10.2%), which is
> headed by Joel Hochberg.
>
> HAPPY!


Dringo, I would love to know where you get this information from.
Tell us!
As I am aware, Rareware still states an ownership of 25% for Nintendo.
Check their site.
Sat 10/08/02 at 19:28
Regular
"Peace Respect Punk"
Posts: 8,069
Gollum wrote:
> Why? well consider that Donkey Kong, a character back in the hands of
> Nintendo is being developed at the HQ of Kyoto with Donkey Kong Plus.
> It would mean that Nintendo knows something of the matter and have
> subsequently told Rare to use their own franchises from now on.


Donkey Kong plus isn't a 'next-gen' title if you will in that from what we've seen (one or two screenshots of it) it appears to be just a map builder for the original DK arcade. In DK Arcade you controlled Mario and chased DK who had the princess. They're hardly going to let anyone else develop a game where you control mario are they? Plus I don't think Rare really mind the DK liscense. They've pretty much developed it as they like, introducing a whole host of new Kongs since they got the DK franchise back on the SNES with Donkey Kong Country.

I wouldn't be suprised if Rare went multi-format, but then I wouldn't be suprised if they didn't.Personally I hope they stick with Nintendo, simply because I am a Nintendo fan and I hope that they don't have to go to other publishers who could well turn the pressure up to produce a game before all the Rare polish has been added.
Sat 10/08/02 at 19:07
Regular
Posts: 5,630
Tiltawhirl wrote:
Thing is Nintendo have got this far without any help from
> Rare and the Gamecube is doing really well,

My sentiments exactly. Before, Rare held a much more importnat position, whereas now with Capcom making Resident Evil Gamecube exclusive, and popular PS2 games like SSX Tricky and Tony Hawk appearing, Rare games have become a welcome extra rather than an absolute necessity.

Plus, I get the feeling that Nintendo are keen for Rare to take on old Nintendo franchises rather than let them innovate enough.
Fri 09/08/02 at 23:53
Regular
Posts: 18,185
Right to put all this to rest, who owns what of Rare, remember Nintendo own enough to have a fairly large contribution to what goes on:

Right Nintendo did buy 25% of shares but since the company grew so did the amount of shares, it is offical this is what is owned by who:

Rareware Ltd. is the majority shareholder (52%) and is owned and run by Chris and Tim Stamper. Rare Acquisition Inc. (37.8%) is owned by Nintendo Co. Ltd. and is represented by ex-NOA executive Howard Lincoln. The third partner is Rare Coin-It Inc. (10.2%), which is headed by Joel Hochberg.

HAPPY!
Fri 09/08/02 at 23:25
Regular
"Nasty Fat Hobbit!"
Posts: 1,193
Tiltawhirl wrote:
> The own 49% of Rare which basically gives the the say what Rare do,
> Microsoft wouldn't be able to buy into Rare if Nintendo still own a
> major stake in them.
>


No...Nintendo own 25% in Rare!!
Geez.
If you don't believe me, check out Rare's website telling you that!!
Fri 09/08/02 at 22:54
Regular
Posts: 18,185
No Nintendo own a small percentage, Rare own the largest and another person owns a bit.


Nevertheless if you read the latest Scribes they did tell you that Kameo is still in development it is just in development hell which they have just got out of.

It is a VERY bad thing Rare going multiformat. Not for Nintendo as Nintendo needed them when they only had 2 second party developers and barley any third party support. Now they have 8 second party developers as well as the two newly aquired first party developers and more third party support to shake a stick at. Rare meawhile should be aware only two companies allow games to take 2-3 years to make, Nintendo and Microsoft and so they'll have to make games quickly or suffer the consequences, which later means Rare games will go downhill.
Fri 09/08/02 at 21:24
Regular
Posts: 21,800
The own 49% of Rare which basically gives the the say what Rare do, Microsoft wouldn't be able to buy into Rare if Nintendo still own a major stake in them.

Though judging by he recent goings on in the Twycross offices I think it's likely that Rare will be going multi-format, though you never know with those guys they love being secretive and making people wait. For all we know they may suddenly announce a load of new GC games and they where just letting this last cause it's got em a hell of a lot of publicity. Your guess is as good as mine..
Fri 09/08/02 at 21:19
Regular
"Nasty Fat Hobbit!"
Posts: 1,193
Nintendo only owns 25% of Rare.

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