Rare COULD branch out to a 3rd party, but they would not get some of the benefits mike stated in his earlier post.
Quote:
1. They are the first to get the hardware and development tools (and it's free)
2. First to get any upgraded tools
3. Know all the secrets in Nintendo's camp ahead of anyone
4. They are paid by Nintendo until they get a game out and the game starts to pay (many 3rd party games suck because developers need to sell the game to afford working on the next one)
5. (In Nintendo's camp) they can delay a game until it's really ready to get on the shelves without pressure from the publisher
6. They don't pay for costs of publishing, marketing distribution, etc.
7. If the games is not that great as expected, they don't have to survive on the bad sales of the game.
8. Free support from the 1st party develoment teams in crucial part of games (designers, writers, programers, engines, tools, codes)
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I think sticking with nintendo and re-sgining a contract would be smarter.
Of coarse this information is useless, as this whole topic is just a rumor started on a board.