Microsoft Buys Rare
Phwoar writes "Microsoft have announced their buyout of the games developer Rare. After a $375 million payoff Rare will now produce games solely for the Xbox. After Rare's recent releases for the Nintendo systems bombed, Nintendo decided to sell their 49% stake in the company last week rather than buy the company themselves.
Google News has a nice collection of links to articles regarding the announcement." You might be reminded of Microsoft's purchase of Bungie a few years ago.
When Microsoft bought Bungie, it was to buy a "killer app" for the X-Box and nerf it's simultaneous PC development for fear it would show up the X-Box.
Rare on the other hand has a whole one game announced and a legacy of Nintendo titles. Ultimately, it's just another shot fired in the console wars, rather than a loss to PC gaming, this time.
I would buy an X-Box, knowing Bill loses as much money as I spend on each one sold - but he has more money than me and so is going to win that war.
Yippie. Now Steve Balmer won't be the only large, hairy monkey to hold an Xbox controller.
--
#nohup cat
Considering the fact that Nintendo is quickly picking up great 3rd part support, such as Squaresoft and Capcom's Resident Evil series, this actually makes a lot more sense then it did at first glance. the register, at http://www.theregus.com/content/54/26394.html, makes a great point about the logics of selling Rare, which is what many argued was Nintendo's greatest asset. Apparently, the founders of Rare, the Stamper Brothers, are soon to leave the company, so most of the innovation that came in Rare games was to leave them. I am a proud owner of a Gamecube, and all I can say is, we still get Starfox, and we can always just make another great 1st person shooter using the 007 liscense :)
375 million? i think they paid that much just for the prestige of owning a previously successful game company. Now after they pay the cost to switching to the xbox development environment, they got to produce something worthwhile. I dunno about you, but 375 million is difficult to live up to. I think the idea it total garbage on microsoft's part.
Am I the only person who read that as "Microsoft Bugs Rare"?
More proof that speed-reading CAN cause heart attacks. Or (insert soft drink of choice) to be spit all over the monitor, at any gate.
It's an old story. Developers aren't exactly flocking to the XBox platform and most that do develop for the Xbox, also develop for the superior PS2 and GameCube platforms.
It's a last-ditch effort by Microsoft to take control of more game developers in an attempt to slow their continued decline in 3rd place.
Google News: "Microsoft Buys Rare - Slashdot - 11 minutes ago"
Slashdot: "Google News has a nice collection of links to articles regarding the announcement."
Google News: "Microsoft Buys Rare - Slashdot - 11 minutes ago"
Slashdot: "Google News has a nice collection of links to articles regarding the announcement."
Google News: "Microsoft Buys Rare - Slashdot - 11 minutes ago"
Wash, Rinse, Repeat.
main(c,r){for(r=32;r;) printf(++c>31?c=!r--,"\n":c<r?" ":~c&r?" `":" #");}
375 megabucks is a lot of cash. MS has had significant problems marketing XBox. It seems to me that they must be really worried about losing a source of games.
Does anyone know how many employees work at Rare? I know it's not distributed evenly but they must be pretty happy about it on the average.
Especially so for those whose stock is already vested.
-scsg
Anyway, Rare doesn't have as much of a pedigree as Microsoft probably thinks it does. I'm betting most people associate Perfect Dark, Donkey Kong, etc more with Nintendo than Rare. They are going to have to shout from the makers of perfect dark on any future commercial advertising Xbox titles by Rare if they expect anyone to care, or even notice...
(-1, Raw and Uncut is the only way to read)
Not to sound like an MS hater here, but this is an incredibly poor purchase. Rare as a development studio was cut loose by Nintendo because (in addition to making up very little of Nintendo's revenue for 2001 and 2002 prior to Starfox) they missed deadlines and put out subpar games (DK64, Jet Force Gemini, Perfect Dark (if you can't stand the horrid framerate)) for the last several years. To make matters worse, most of the decent devs (including the founders) have left to form their own companies and Rare itself only has two or three marketable licenses (Perfect Dark, Banjo Kazooie, and Conker (maaaaybe)). So MS is paying hundreds of millions for a game developer recently known for its overbudget, late games that aren't very good and doesn't even get any big licenses in the bargain. Why didn't they just sink $10 mil into 20 or 30 dev houses to fund a bunch of big exclusive games? They'd get more results faster and almost assuredly higher quality.
With the delay of Panzer Dragoon Orta to 2003 the Xbox's Christmas lineup is also fairly lackluster and sales this Xmas could be very poor. Of course, if MS keeps pumping marketing dollars into it maybe they can convince America that the console is doing great.
I'm not trying to start a console flamewar (I go where the games are in most cases, and I will probably pick up an Xbox at the next price drop), but with Xbox's sales figures for Japan (the-magicbox.com) showing that in some weeks even the PSOne is outselling it, I wonder if the Japanese game studios will be abandoning what little development they already do on Xbox and concentrating on the two surviving consoles instead.
I think the obvious next move is for Microsoft to buy Sega. Their own developers have some ok sports games, but Sega would buy them some real sports clout along with some younger generation appeal that they could use to balance their library of titles.
Just think, if they could claim exclusive rights to Sega's line of sports games, including NFL, NBA, NHL, baseball, tennis, and college football lines. They could be the premiere sports games for the Xbox Live online service, for example. And a Virtua Fighter would put Xbox squarely in the sights of many fighting game fans, since then DoA, VF, and Soul Calibur would all be available on one system. Add online opponents and tourneys, and they could potentially hand out more hats of money. Then with Sonic and those cute little Super Monkey Balls, they'd have a possible in with children and youngsters that aren't necessarily into the older games. Make all of these exclusives, and the Xbox looks a whole lot better of an investment.
You know they've thought about it, and now we know the stakes: $3.75e8 dollars for someone like Rare that doesn't have the rep or the library of Sega. Sega's gotta be worth what...twice that...in franchises and development talent alone.
While we're talking numbers, how many units of games does Rare have to sell to be worth it to MicroSoft? Or, perhaps more importantly, how many monthly online subscriptions? And how long is it going to take them to pay it off, given that they're going to incur more costs, in terms of development and promotion, just to get a game out the door?
The usual disclaimer: I'm not an Xbox or MS fan. Read my blog and you'll see where my interests lie. I'm just commenting on the situation as I see it...
Curmudgeon Gamer: Not happy
...looks like game companies aren't all that Microsoft has been able to buy.
"Ask not what your country can do for you." --John F. Kennedy
and one they should update for the XBOX.....
:)
R/C Pro-AM!!!!
sorry, had to. i looove that game.
siri
Nintendo sells their shares in Rare and top-off their coffers. They win.
Rare makes off with MS money, the finest money that money can buy. They win too.
MS gets a development house that used to turn out hits, but has floundered in recent years. Tim and Chris Stamper are leaving. That leaves Conker, Perfect Dark, and that's about it. No Donkey Kong or anything else owned by Nintendo.
About the only _real_ downside to Nintendo consumers (IMO) is that any sort of RC Pro-Am sequel will be an xbox exclusive. Boohoo. On a lot of the gamer website forums, this has been a huge non-issue for the past few days, since Rare hasn't been playing with the big boys in terms of game quality/quantity for quite a while.
< tofuhead >
It is still the dark of night.
Now Microsoft will be able to say what we already knew: "If it's good and it's Microsoft, it's gotta be Rare!"
He who refuses to do arithmetic is doomed to talk nonsense.
I thought it read "Microsoft Buys Rare Sofa". Just the thought of Lazy-Boy XP makes me shudder.
Play some Super Monkey Ball 1/2, Virtua Fighter 4, Sega Soccer Slam, or Sega Sports Tennis, then come back and post that comment again. I dare ya.
There's not much that's more fun (at least when it comes to video games) than getting three friends together and playing Monkey Fight 2 for a couple of hours.
I wish I had a kryptonite cross, because then you could keep Dracula and Superman away.
not saying that SONY would not, if they had the money to do it -- oh wait, they DO have the money to buy a couple outside developers just for shits and giggles, but didn't.
What kind of crack are you smoking, exactly?
Nintendo bought Rare, as well as a few other houses.
Sony bought Psygnosis (Wipeout), Square (Final Fantasy; major shareholder), Polyphony Digital (the guys who did Gran Turismo), Incog (Twisted Metal), Verant (Everquest), Red Zone (989 Sports), Naughty Dog (Crash Bandicoot), The Station (Online game center), RTIME Inc. (online game infrastructure company), Millennium (Medievil), Arc Entertainment Inc., Sugar and Rockets Inc. (Kurushi), and Contrail Inc.
(Wild Arms).
So, I guess Sony's customers are suffering because of this game buy out thing?
Or do you still claim that sony DIDN'T do this?
Coming soon - pyrogyra
I agree with you for the most part, but I must say that Perfect Dark is a great game. Frame rate could have been quicker, but that was just because they pushed the N64 hard.
I keep an N64 around just for that one to be played in multi-player mode once in a while.
Blogging because I can...
When Microsoft bought Bungie, it was to buy a "killer app" for the X-Box and nerf it's simultaneous PC development for fear it would show up the X-Box.
Throwing away money to assure exclusivity, same as with their acquisition of rights to FASA's BattleTech video game development (IP value, if nothing else... too bad they don't roll out Ralph Reed's BattleMech!)
Rare on the other hand has a whole one game announced and a legacy of Nintendo titles. Ultimately, it's just another shot fired in the console wars, rather than a loss to PC gaming, this time.
More good money after bad. Seems apparent, to me, that without their monopoly they couldn't shoot fish in a berrel. I can't recall where I've seen this strategy of spending money like crazy on to prop up a dying horse, but I do recall it's unusual in the extreme to see it succeed. They're hemmoraging cash and the estimates (from CNN) are they'll get 1.5 million units into the Europe-Middle East-Africa market, and Sony/Nintendo will cover the remaining sales of 12.7 million units.
IMHO Sony and Nintendo are smarter to leave much game development out of house, in the hands of garage developers everywhere, which fosters more creativity than:
It's practically a guarranteed failure.
What next? Steve Balmer running around on a stage, getting all sweaty and telling us how great the new X-Box Solitaire is? Actually, that might sell...
A feeling of having made the same mistake before: Deja Foobar
1. Now all of a sudden a lot of really good games that may have been produced and released on different platforms are only going to be for the X-Box. I was hoping to see the PS2 doing a sequel to Perfect Dark or Conker's but I guess that won't happen.
2. This is EXACTLY what Microsoft needs for the floundering X-Box. So far the machine has had only a handful of decent games that are exclusive to the machine, and a whole lot being developed for all platforms. If I own a PS2, why should I bother getting an X-Box for a game that is available on my machine? The more imaginative developers jump on to the X-Box bandwagon (or in this case are lassoed and pulled onto the bandwagon) the better it is for the platform.
Whether any of this is a good thing I guess remains to be seen. Considering that nothing spectacular has been heard to be coming from Rare (at least any time soon), maybe this won't make a difference worth mentioning. Anywho, just my 2c. Agree or disagree?
"I'm a leaf on the wind. Watch how I soar."
-Hoban Washburn
The PSX had an internal MPEG decoder (allowing higher-quality, fullscreen playback of MPEG files than the SH2-bound softdecoding the Sega Saturn used), a 3D acceleration engine based around triangles instead of quads. Its SH2 CPUs were slower (even if there were two of them, not all games took advantage of SMP), and its overall MIPS level was lover than than of the PSX. It was also very hard to program for, as the SMP locking was beyond most game programmers, or wasn't really as beneficial as Sega had hoped. A shame, because the SMP parts were more expensive to build -- which led to Sega losing money on each unit.
;)).
The PSX won because of its games, possible because 3rd party people had an easy-to-use developer kit which provided easy MPEG playback for cut scenes, an easier to write for 3D engine (triangles vs. quads againt, remember the NV1? It failed because it was quad-based), and because it was easier to write UMP games than SMP ones (although Yu had Virtua Fighter running with each processor computing one of the players' characters, this was the exception).
Sometimes, superior systems do win even if people seem to think something else was superior (although the PS2 is another discussion
--
Internet Explorer (n): Another bug -- that is, a feature that can't be turned off -- in Windows.
Also this adds up. MS will need over 1 billion PER YEAR just to keep XBox alive.
At least in this case, they were buying into the company to help them out of the sticky situation they got themselves into by making a poor and very expensive film, which put Square into dire financial difficulties. Can't blame Sony for that, IMHO