Why Nintendo Walked Away From Rare

Storyline (business + development arc)

Rare’s rise (mid-1980s → early 1990s)

• Brothers Tim & Chris Stamper formed Rare after shifting focus toward consoles and Nintendo.
• Because Nintendo wouldn’t readily share NES tech documentation, Rare reverse-engineered Nintendo hardware and proved itself with Space Hunter.
• Rare became the first Western developer Nintendo licensed to make games for Nintendo systems.
• The studio built credibility through many SNES-era hits (including Battletoads; its popularity helped demonstrate momentum).
• To stand out from studios Nintendo could do “in-house,” Rare invested heavily in high-end Silicon Graphics (SGI) workstations to create visuals the SNES couldn’t render in real time.

The “Donkey Kong Country” breakthrough (1994)

• Nintendo gave Rare the Donkey Kong IP; Rare rebuilt it from the ground up, and created Diddy Kong as the partner character (in line with Nintendo’s feedback on naming/appearance).
• The SGI pre-render technique enabled an illusion of next-gen 3D on aging SNES hardware.
• Donkey Kong Country impressed critics and executives, validating that Rare could deliver “the future” on existing Nintendo tech.
• Nintendo later bought a stake in Rare (initially described as 25%, eventually growing).

Consoles shift; Rare becomes critical (N64 era)

• Nintendo needed third-party support to fill the Nintendo 64 release calendar, and Rare’s structure allowed multiple teams to develop in parallel, buffering delays with other projects.
• Rare’s standout console-defining work: GoldenEye 007.
  • Rare successfully adapted first-person shooter ideas to N64, turning a PC genre into a console hit.
• Rare also delivered major holiday/flagship titles:
  • Diddy Kong Racing (while Banjo-Kazooie slipped)
  • Banjo-Kazooie
  • Later N64-era successes: Jet Force Gemini, Donkey Kong 64, Banjo-Tooie

The relationship starts to strain (late N64 → GameCube)

• As games became more expensive and development harder, Nintendo reportedly saw Rare’s output decline:
  • Rare’s share of Nintendo worldwide software sales allegedly fell from 9.5% to 1.5%.
• Rare’s ability/willingness to ship on time weakened during the GameCube transition:
  • Dinosaur Planet became the basis for Star Fox Adventures, but Rare didn’t deliver in time to significantly help GameCube launch momentum.
• Nintendo reportedly considered buying the rest of Rare but did not by the deadline; Microsoft’s bid later escalated.
• Nintendo sold its remaining stake, and Rare was acquired by Microsoft for $375 million.

Microsoft era results (2002 → later)

• Microsoft kept Rare relatively hands-off but quickly raised expectations for Xbox exclusives.
• Output lag and long development cycles followed (e.g., Grabbed by the Ghoulies, later Kameo, Perfect Dark Zero).
• Rare still produced standout innovation:
  • Viva Piñata (deep ecosystem-simulation under a colorful “kids” surface).
• After the Stampers left (early 2007), leadership and culture shifted.
• Later, Rare pivoted toward different styles and modern multiplayer:
  • Banjo-Kazooie: Nuts & Bolts is cited as a controversial direction change.
  • Sea of Thieves is framed as Rare finding a new identity: shared world, player-driven stories.
• By 2024, Sea of Thieves reportedly reached 40M+ players across Xbox/PC and later expanded to PlayStation.

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Gameplay highlights / key ideas mentioned (game-focused)

The video is mostly about history, but it references gameplay concepts and what made certain games work.

Donkey Kong Country (technical gameplay feel via visuals)

• SGI pre-rendered visuals created a “3D-looking” experience on SNES, helping the game feel next-gen despite older hardware.
• Rare’s “star quality” approach:
  • Rebuilt DK’s presentation from the ground up
  • Added Diddy Kong for gameplay pairing and identity

GoldenEye 007 (console FPS breakthrough)

• Rare translated FPS expectations into N64 controls and feel—where Nintendo lacked experience.
• It mattered because it proved the genre could define a console, not just PC.

Diddy Kong Racing (improvised holiday strategy)

• When Banjo-Kazooie slipped, Rare shipped Diddy Kong Racing—a racing-focused alternative that still leveraged Rare’s recognizable character strength.
• The key point: parallel development meant a “backup” project could become the holiday launch.

Conker’s Bad Fur Day (adult-content pivot)

• Took an existing cute platformer concept and remade it for mature audiences.
• Marketing/distribution became difficult:
  • Some retailers refused
  • Regional differences and publishers affected rollout

Viva Piñata (systems gameplay depth)

• Presented as an ecosystem sim:
  • Attract animals by growing correct plants
  • Animals can attract others (including predators)
  • The player manages food-chain stability

Sea of Thieves (modern multiplayer identity)

• A shared open world with emergent stories driven by player actions.
• Emphasis on the “pirate world” tone and social gameplay.

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Strategies / lessons highlighted (how Rare helped Nintendo)

• Prove hardware competence first: reverse-engineer and build a working proof before relying on Nintendo cooperation.
• Differentiate beyond what the console can do in-house:
  • Invest in SGI workflows to overcome SNES real-time limitations.
• Use parallel teams to reduce scheduling risk:
  • Multiple smaller teams working simultaneously across different game types helps prevent release-calendar collapse.
• Adapt when projects become risky:
  • When FPS plans weren’t straightforward, Rare pivoted (e.g., moving from GoldenEye tech lessons toward an original universe for Perfect Dark).
• Accept and manage creative risk:
  • Adult-content reinvention (Conker) and new ecosystem simulation (Viva Piñata) show Rare’s willingness to go beyond “Nintendo-safe” directions—along with the business cost of doing so.

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Gamers / sources featured (as named in the subtitles)

• Tim Stamper
• Chris Stamper
• Shigeru Miyamoto
• David Wise (composer)
• Brendan Gunn (Rare programmer; quoted)
• Greg Mayles (lead designer, Donkey Kong Country)
• Ed Fries (Xbox executive; quoted regarding option/deadline/perspective)
• Justin Cook (worked at Rare during transition; quoted)
• Martin Hollis (director of GoldenEye; quoted; left mid-development of Perfect Dark)
• Phil Tossell (former Rare developer; quoted)
• George Harrison (Nintendo of America senior VP of marketing & corporate communications; quoted)
• Chris Seavor (director of Conker’s Bad Fur Day; quoted)
• “Freeze” (named in subtitles; provided commentary on how Activision due diligence/interest played out)
• THQ (publisher mentioned)
• Activision (publisher mentioned)
• Microsoft (company referenced)