Question: After Microsoft purchased Rare from Nintendo, a DS remake of Diddy Kong Racing came out. Developed by Rare and published by Nintendo. But if Rare no longer works with Nintendo, how did Rare make the game?
Chosen answer: Short answer; Microsoft allowed them to. Since Microsoft wasn't involved in the handheld console market, Rare was still able to develop handheld games for Nintendo (essentially a small division of Rare was allowed to develop these games as long as their main focus was on developing Microsoft games). Rare developed games for the Gameboy Advance which were published by THQ before development for the DS. Microsoft even said in 2003 they weren't going to publish GBA/DS games and if any company wanted to they could. There were rumors at the time that the DS was going to be able to connect to the XBox because of Rare developing these games.
10 biggest mistakes of 2017
A new menu and more - thoughts welcome...
25 biggest mistakes in classic Disney movies
First pictures of Josh Brolin as Cable for Deadpool 2
The biggest mistakes in Spider-Man: Homecoming