Neowin.net - Microsoft buys game developer Rare

Microsoft buys game developer Rare

Posted by Marcel Klum on 21 September 2002 - 16:20 · 41 comments & 4250 views

Microsoft has acquired British game developer Rare, a Nintendo executive confirmed Friday.

Nintendo said in a statement that it has sold its 49 percent interest in Rare--developer of games based on popular Nintendo franchises such as Donkey Kong--but declined to name the buyer or price.

But Peter MacDougall, executive vice president at Nintendo of America, confirmed to CNET News.com that the sale was part of Rare's acquisition by Microsoft, which now owns Nintendo's 49 percent stake and Rare's majority share.

"The entire company has been sold to Microsoft," he said.

Microsoft has not announced the Rare purchase, and a company representative declined to comment on the deal. The acquisition has been the subject of numerous reports, estimating the buy at anywhere from $400 million to $540 million.

Schelley Olhava, an analyst for research firm IDC, said the type of family-friendly games Rare creates are exactly what Microsoft needs to broaden the appeal of the Xbox beyond hardcore gamers.

News source: CNET

Former president Richard Belluzzo, who left Microsoft earlier this year, earned $918,723 in salary and bonus and $13.7 million in "all other compensation." That reflects the remaining portion of a $15 million advance Microsoft made to Belluzzo in December 2000 as a guaranteed minimum of what his stock options would be worth as they vested.

Microsoft disclosed that it made a similar arrangement in November 2000 with Richard Emerson, senior vice president of corporate development. The company advanced him $12 million, as part of its efforts to recruit him from the investment banking field.

Financial arrangements such as these are now illegal under the corporate-reform directives laid out under the 2002 Sarbanes-Oxley Act and Microsoft "in the future will not enter into these forms of transactions for its executive officers or directors," the filing said.

Compared to executives at other top companies, Gates and Ballmer receive low salaries, said Robert Fong, managing director with Seattle-based executive search firm Leadership Venture Partners.

"(Five hundred thousand dollars) for an organization like this is nothing," Fong said. But Gates and Ballmer aren't living for their paychecks, he said. "You don't find many execs 20 years after an (initial public offering) of a company still so heavily involved. They're not working for the cash anymore."

Jeffrey Raikes, group vice president, productivity and business services, earned $745,083, a 7% increase over his 2001 compensation. Craig Mundie, senior vice president and chief technical officer, earned the biggest raise, jumping 38% to $627,172 from $453,899 the year before.

Microsoft also announced it will hold its annual meeting for shareholders on Nov. 5.

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#1 Posted by twist on 21 Sep 2002 - 17:19: ohh man, nintendo must be smoking crack

(1 reply) #2 Posted by elw3irdo on 21 Sep 2002 - 17:35: Damn you MS! They are just trying to get rid of the competition.

(2 replies) #3 Posted by Fonze on 21 Sep 2002 - 18:24: maybe they will actually make a decent bond remake that will be as good as Goldeneye

#4 Posted by ToxikK on 21 Sep 2002 - 19:30: i did not want to hear this. phudge.

#5 Posted by RobertH on 21 Sep 2002 - 19:58: Now ive seen it all im with ToxikK. I didnt want to hear this either.

#6 Posted by Kompressor on 21 Sep 2002 - 20:18: MS IS TRYING TO TAKE OVER THE WORLD!! or just take over the gaming world

#7 Posted by sorlag on 21 Sep 2002 - 22:16: nah, not ms is taking over the world,..... i am!

#8 Posted by noir on 21 Sep 2002 - 23:27: "W'at're we gonna do today, Brain?" "The same thing we do everyday Pinky, try to takeover the World!!"

(4 replies) #9 Posted by C²zero on 21 Sep 2002 - 23:43: No,No,No,No,No,No,No,[b]NO[/b] AHHH! No Conker's Other Bad Day for Gamecube. I want to see the Xbox drop dead and die, and stay dead. I still will never buy an Xbox, even though one of the best game company have switched sides. Xbox, · Crap Company · Crap Games (excludes rare) · Crap Online service · Crap Remote needed to watch DVD's · Crap Controler · Crap Prices for anything and everything Xbox I very much dislike the Xbox. N-E-Way, I see this more of a loss for Rare than Nintendo. I don't know anyone who has an Xbox. I mean, · Microsoft? arent they the people that make the crap for my computer? That is what they think when they here Microsoft. Sony and Nintendo on the other hand, · Sony? they made the PSX and my sexy 48" Widescrene HDTV. · Nintindo? they've been making games & systems 4-ever. plus, they make the tiny portable system too. Microsoft has nothing but money and advertizing behind the Xbox. I'm done hateing on the Xbox now. ~

#10 Posted by als345 on 22 Sep 2002 - 01:09: Then I well hope there well be Perfect Dark For XBOX

#11 Posted by webfire on 22 Sep 2002 - 04:48: Sounds like nintendo is going to fall down like sega with its dreamcast

#12 Posted by Mystical112 on 22 Sep 2002 - 16:59: this sucks... stupid microsh*t.....

#13 Posted by Paulnc on 22 Sep 2002 - 19:09: Next stop... neowin?! Should we expect to see this label on Rare's games? [img]http://developer.intel.com/design/motherbd/whql.gif[/img]

(1 reply) #14 Posted by xStainDx on 22 Sep 2002 - 19:20: Donkey Kong, now a nice seat inside of Bill Gates' Office. Don't forget those dudes from Killer Instinct.

(3 replies) #15 Posted by jago6498 on 22 Sep 2002 - 19:50: Is it just me or is anyone following a trend here with Micro$oft? They HAVE to buy (or try to buy) companies just so they can have decent games on their system. They tried to buy SquareSoft (the DUMBEST move in gaming history). They even tried to buy Sega. Two of the industries biggest heavy weights. On the other hand, with Nintendo and Sony. The big game developers are just deciding to make games for those system without either companies having to brib them. This should be a danger sign to anyone (especially those owning an Xbo. NO American developed system has ever succeeded against Japanese consoles. Anyone remember the Jaguar? It's not a door stop . Also, these Xbox fanboys that think that think the Xbox is going to surpass the PS2 are dillusional. Sony would have to do screw alot of things up to allow Micro$oft to surpass them. Oh and XSTAINDX, Nintendo owns Donket Kong. Not Rare. Shigeru Miyamoto created DK. As for KI. I hope they keep KI 3 on definate hold because I would have only wanted to see it on the Gcube.

(2 replies) #16 Posted by Osiris on 23 Sep 2002 - 04:06: ah well thereve got the money and the buying power to buy out the companies so what not?? I mean if you designed marketed and sold a gaming console, and wanted the best and most widest range of games on your system, and had vast amounts of money to axquire this with, wouldnt you buy out whoever and whatever you could??

(1 reply) #17 Posted by Fubar on 23 Sep 2002 - 08:27: rather than buying consols games out with there huge kitty they have why not just go for the pc game makers after all xbox is just a glorified pc with a flashy box... who cares pc own anyway....... wtf is the point of a consol...... ? forgive me for saying this but people who buy consols are thick as pigshit 1) hmmm pc's can do alot more than just play games.. 2) graphics are far better on pc and hmmmmmm its worth the money.. so pay for a consol and just do what with it ? not alot...... its ms's way of getting into a market that they really dont understand and ps2 no matter how much i hate it will win out of the two for one main reason... sony know what there doing and wont have service packs out for there ps2 like ms will have for there xbox and as far as i can see ms have problems with no matter what they do.. have fun guys.. btw i have the right to slam ms cos i use there os its ok not the best but what is the best ? lol anyway just my opinion

(1 reply) #18 Posted by Parthymon on 23 Sep 2002 - 16:46: I jusst saw something interesting, something about how RARE acounted for like 1% of Nintendo's games for like the past 2 years. THat would be reason enouch to sell it, but jesus, not to MS.

#19 Posted by kuregu02 on 23 Sep 2002 - 17:10: Stop with the blind hatred! I may not like GC, PS2 or Linux, but when someone posts something about them, I don't jump in and start bashing them.

(2 replies) #20 Posted by walters17 on 23 Sep 2002 - 20:12: Ok lazy people if you researched anything instead of automatically assuming MS was the bad guy. You would know Nintendo sold it because rare was making 1% of the profit as opposed to the 9% from two years before. Secondly Nintendo still owns all the rights to rare games except Perfect Dark. Besides nintendo games are so stupid and non violent. I used to like them until they made Marion their life and sole. I mean whats his latest game? Cleaning a toxic island or something, next week he will be selling mary kay.

(2 replies) #21 Posted by FinalMoon on 24 Sep 2002 - 02:41: Alright, I'm not meaning to step into the middle of a huge gaming war here, but quite frankly I think everybody ranting about how the xbox, or nintendo, or PS2 is better than all the others is waistin their breath. Nobody cares. It depends on your taste. When you get right down to it they're all pretty much the same. They all have pretty much the same graphics, ok games, and etc. I am a fan of the Xbox mainly because the games I want are on there. I don't care what my friends or anybody else says Halo is friggin awesome! I can't think of a single game on the PS2 that I want, and Gamecube has SOME cool games, but I don't think they're going to last, seeing as how it's nintendo *remembers how the N64 went down the crapper* Look, I hate Microsoft just as much as anybody, but Halo, Blood Wake, Wreckless, Amped, Dead to Rights, Project Gotham Racing, NEED I GO ON? It depends on your own taste. I'm sure I stirred up thousands of geeks out there who are going to come on and tell me about how great the PS2 is... Oh and another thing, when you're slammin the Xbox, PLEASE don't bring up that you have to have a controller to play DVD's... That is the uttermost stupid thing you could POSSIBLY say. Who friggin gives a crap??? It's what, 30 bucks? Besides, most people have a little thing called a D-V-D PLAYER. I mean, I could understand if we were talking about DVD Players here, and one of them you had to buy a controller seperately... But The Xbox's main function, incase you haven't noticed, is to PLAY GAMES! (mainly Halo) Now, when Christmas rolls around, I'm blowin 200 bucks on an Xbox and there's nothin you can do to change my mind. So stick that in your pipe and SMOKE IT!

#22 Posted by mmr2001 on 24 Sep 2002 - 04:30: no matter ps2 is still the market leader!!!!! too late 4 that!!!

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