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  Microsoft considers U.K. game grab
Time: 04:41 EST/09:41 GMT | News Source: CNET | Posted By: Alex Harris

Software giant Microsoft is considering acquiring U.K. game developer Rare in a bid to spur development of its own video games for the Xbox, a source close to the discussions said Wednesday. Separately, a source close to Nintendo, which owns 49 percent of Rare, said the Japanese game and console maker had the opportunity to buy Rare outright and passed, clearing the way for a possible Microsoft acquisition.

The source familiar with the discussions said Microsoft is "definitely looking at (Rare) as an acquisition target." He said Microsoft had approached Rare recently, but said he was unaware of the status of talks. Microsoft is facing increasing pressure to publish more exclusive titles for its Xbox game console. The shooting game "Halo" was a breakthrough hit for the game machine, but Microsoft needs fresh titles as the holiday shopping season approaches. Calls to Rare were not immediately returned Wednesday. A spokeswoman for Microsoft declined to comment.

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