[TheGame]

Originally posted by Xantar
As I recall, what he was confirming was that Rare will go third party or develop for other platforms, not that they would be sold to anyone. When websites started saying that Rareware had been sold to Microsoft, Matt that he didn't know what was going on (of course, IGN printed a confirmation the next day, so he wasn't that far behind).

http://cube.ign.com/articles/370/370713p1.html

September 11, 2002 - 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.

Read the rest if you wish. This is before official comfirmation from any Nintendo related source. I didn't see anything about them "going third party"