I think Nintendo should have bought their IPs, and then sold their shares to Microsoft.
That way, they could future proof Conker, Perfect Dark, KI, and Jet Force Gemini (why is there no sequel to this? I would buy an Xbox One for a JFG2).
No way MS would have bought the shares if Nintendo had stripped Rare down
I've discussed that before. Nintendo had a chance to keep Banjo Kazooie & Conker because of Diddy Kong Racing. Nintendo however chose to leave them and make DKR a misc. title with no direct rights. I assume it's because Nintendo wanted nothing to do with Conker after Bad Furday. The other IPs were never in contention and couldn't be gutted from the sales acquisition.