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It's Official: Microsoft owns Rare

Old 09-11-02, 07:14 PM
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It's Official: Microsoft owns Rare

Fat Matt from IGN has posted some news at http://cube.ign.com/articles/370/370713p1.html

Thoughts? Any Rare games on the Cube?
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Old 09-11-02, 07:20 PM
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Well, technically, it's not official until Rare, Microsoft, and/or Nintendo announces it. But it is starting to seem as if this is more or less a done deal and it's just the details that are being hashed out.

Though, some of the details may prove to be quite important. How valuable is Rare to MS if they can't deliver PD0 as an exclusive?
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Old 09-11-02, 07:23 PM
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Well I'm surprised... whatever they paid - they paid too much.
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Old 09-11-02, 07:24 PM
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SFA will be the first (and probably the last) Rare game on the cube. My thoughts are.. I'll miss their games (don't own an xbox, probably never will), but not a lot. They've had some great ones.. and some less than good ones.. I just think the only reason they have such an acclaimed status is because they were one of the few providing some great games on the n64.
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Old 09-11-02, 07:24 PM
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Since Microsoft bought every share of Rare from the developer and Nintendo, I would venture every game they make will be exclusive to the Xbox. Rare is now a Microsoft 1st party.

As for the value of Rare with or without Perfect Dark, it really doesn't matter. Rare is innovative enough to create brand new franchises.
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Old 09-11-02, 07:34 PM
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And if I remember correctly, PD sales were pretty disappointing anyway. Tossing the series out won't make that big of a difference.

I wonder which is going to make me buy an Xbox: the first great Rare game on it, or when MS releases a version that can be used as an mp3 receiver.
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Old 09-11-02, 07:44 PM
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Originally posted by Aghama
And if I remember correctly, PD sales were pretty disappointing anyway. Tossing the series out won't make that big of a difference.
Well, it sold close to a million units in 2001 in the US, which is pretty good on a console near the end of it's life.
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Old 09-11-02, 07:52 PM
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Originally posted by Flay
Since Microsoft bought every share of Rare from the developer and Nintendo, I would venture every game they make will be exclusive to the Xbox. Rare is now a Microsoft 1st party.

As for the value of Rare with or without Perfect Dark, it really doesn't matter. Rare is innovative enough to create brand new franchises.
Well, that's the question. This event will prove very important for either Microsoft or Nintendo, but I'm not sure which.

To make Rare an MS first party, Microsoft bought out the Stamper brothers, who founded Rare, and Nintendo. Rare's talent pool was already diminished by the defection of a big chunk of the Goldeneye team to create Free Radical, and the Stampers are generally considered to be central to Rare's creative team. They're apparently selling out to retire from the games business, so when Microsoft goes over to Rare, they don't go with it.

Is Rare without the Stampers still Rare? Well, maybe. If Microsoft can augment Rare's teams with new talent, and get them producing games at a faster rate, they can turn Twycross into a tremendous force. But if the company is diminished in the transition, it may turn out to be an expensive bust for MS.

The other question is what Nintendo will do with the huge cash influx from the deal. If they stash it away, then they're stuck with a diminshed lineup. If they use that money to buy up another d have a suspicion that they might try to buy Capcom. They have a good relationship, and Capcom has a lot of mature franchises, and Nintendo needs some. Plus Capcom also has Street Fighter, and Nintendo needs a technical martial arts fighting game.
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Old 09-11-02, 07:59 PM
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I highly doubt Rare went for half a billion dollars... that's just insane. "Hi, we're Rare... we haven't put out hardly any games lately and our creative team and development team is all leaving... wanna pay half a billion dollars for us so we can retire and drink margaritas out of cocoanuts on a private beach that we own?" "Hi, we're Microsoft - we want to be number 1, and we're stupid, so we'll buy you out and ignore developers like Capcom and Rockstar and Interplay since they are too busy developing great games to answer our phone calls... here's half a billion dollars" (Microsoft hands over 40 huge pillowcases stuffed with hundreds) "the rest is in the car... hey, why don't you just take the car too"
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Old 09-11-02, 08:09 PM
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Someone ought to pay half a billion to sega just because they have some brilliant games/franchise... hehe
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Old 09-11-02, 08:29 PM
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could some one copy/paste the article? I can't get on ign.com - I'm at work.
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Old 09-11-02, 08:33 PM
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The article is Insider too.

If Rare went for half a billion what do you think Capcom would go for? Well out of Nintendos price range Im sure.
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Old 09-11-02, 08:35 PM
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Reuters has picked it up:

http://reuters.com/news_article.jhtm...toryID=1438495
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Old 09-11-02, 08:39 PM
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I saw the Reuters article earlier. It doesn't say anything new though.
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Old 09-11-02, 08:41 PM
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Originally posted by belboz
Reuters has picked it up:

http://reuters.com/news_article.jhtm...toryID=1438495
Interesting, but I don't see where it states that Microsoft already owns Rare as the title of this thread suggests.

I also find it interesting that VIvendi is up for 2billion bucks. That's outrageous as well. How do these companies figure they are worth so much money?
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Old 09-11-02, 08:43 PM
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IGN's article wasn't Insider earlier. From what I remember, though, it basically had the same information as the Reuters piece. There was a previous article linked in another thread here that had more rumors about the selling price being about half a billion dollars. How true that is remains to be seen.
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Old 09-11-02, 08:48 PM
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I lifted this off RareOps.com, which lifted it off of IGN


In past months, UK development studio Rare has been the subject of a seemingly endless stream of rumors, all of them suggesting the company would break from Nintendo's wings and possibly join with a new publisher. Now we have the full story, anonymously confirmed by numerous credible, high-level insiders. The reports are true. We stake our reputation on it.

Nintendo, formerly a 49% shareholder in Rare, had the chance to purchase the company outright nearly a year ago, but refused, according to high-ranking sources. With Rare software contributions amounting to only 9.5% of total revenues in Nintendo's fiscal 2001 year, and a miniscule 1.5% in fiscal 2002, the publisher weighed the benefits and drawbacks of making additional investments in Rare and decided against it.

Rare went on the market. Publishers bid on the company. Activision and Microsoft were both interested in acquiring Rare, but it was Microsoft who won out and delivered the asking prices for the developer and Nintendo's 49% stake in it. Nintendo sold all of its shares in Rare, according to insiders, and the studio's second-party status was terminated.

The obvious questions then: why all of the secrecy and why haven't Rare, Nintendo or Microsoft made any announcements? The truth is that the details have not been finalized. Insiders allege that Nintendo and Rare are still haggling over licenses, and specifically whether or not Rare will be able to purchase the properties it worked on under the Nintendo brand, including Perfect Dark and other trademarks Nintendo holds. Franchises and characters created and owned by Nintendo, of course, including Donkey Kong, will remain in Nintendo's control. An official announcement, though, is not far off. The latest word is that the news will be made public at Microsoft's X02 Europe event which begins September 24 in Seville, Spain.

Meanwhile, sources indicate that Nintendo plans to utilize some of the money it made in the selling of its Rare shares to entice other development studios to make GameCube software, fund new games, and more. The company's de-emphasized focus on a second-party model and its new partnerships with Namco, Sega, Capcom and others exemplifies its change in development philosophy, and leaves no room for an expensive investment in Rare.

Look for much more on this major news as it develops.
So Nintendo's getting just under half of the $550 million, and then they're going to make Microsoft pay for all the Rare franchises that Nintendo owns.

I'm sure each side thinks it has pulled one over on the other, but I'm not sure who actually got the better end of this deal. With the Stampers leaving, though, Microsoft may very well be paying top dollar for the dried husk of what was once a great development house. I think they would have been better off making a play for Sega or Vivendi Universal's game's division, which includes Blizzard and Sierra.

Of course, they may very well make a play for those companies anyway. If Nintendo gets a piece of companies like Sega or Capcom, or at least improves relationships, that could potentially be of much greater value to them than Rare. Only time will tell if this will pay off for Microsoft, or if divestment was a smart move on Nintendo's part.
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Old 09-11-02, 08:50 PM
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actually - Vivendi does look like it's worth 2 billion...

http://www.vivendiuniversal.com/vu2/...publishing.cfm

Performance
Millions of euros
First Half 2002 actual (unaudited)
Revenues 2,141
Operating Income 95

Full Year 2001 (pro forma)
Revenues 4,722
Operating Income 448


Rare... I'd have to see a data sheet.
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Old 09-11-02, 09:21 PM
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Although Rare hasn't been "up to par" lately on its games, it still is a valuable developer. I'm sure in the very new future we'll be seeing a monumental game from Rare exclusively on the XBOX. And at that time most of us will have to pick one up, ala Goldeneye on the N64. Just a thought.
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Old 09-11-02, 09:35 PM
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Good, but risky for Microsoft. Hopefully this will work out for all parties involved. Nintendo is losing nothing and gaining a lot of money on this deal IMO. Microsoft is taking a gamble that they can easily afford (whats a billion dollars to them anyway) and could pay off huge in 2003 and beyond.
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Old 09-11-02, 09:57 PM
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I could really care less. I have R.C. PRO-AM I & II. What else do you need?
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Old 09-11-02, 10:13 PM
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Originally posted by darkside
Good, but risky for Microsoft. Hopefully this will work out for all parties involved. Nintendo is losing nothing and gaining a lot of money on this deal IMO. Microsoft is taking a gamble that they can easily afford (whats a billion dollars to them anyway) and could pay off huge in 2003 and beyond.
Um, if it pays off huge for Microsoft then that's a fairly significant loss for Nintendo.
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Old 09-11-02, 11:26 PM
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Originally posted by Aghama
Um, if it pays off huge for Microsoft then that's a fairly significant loss for Nintendo.
By "work out for all parties involved" he means that Microsoft will lose billions of dollars and fall into the fiery pit of hell. j/k.
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Old 09-11-02, 11:41 PM
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I own an Xbox and a Gamecube so this doesn't affect me at all really. If the next Perfect Dark game was exclusive to the Xbox I'd be glad. Why, you're probably asking...Because then the game wouldn't suffer from being coded for PS2, and then looking just the same for Xbox. That is something that really annoys me.
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Old 09-11-02, 11:43 PM
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I don't understand what assets Rare might have that would be worth 500 million dollars. Isn't a software company only as good as it's talent? If they are going to replace the Stamper brothers with outside talent couldn't they have just created a new company for this talent?

Last edited by ten41; 09-11-02 at 11:46 PM.
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