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A common internet rumor, typically pushed by Nintendo fans upset over rival console manufacturer Microsoft's purchase of former Nintendo collaborator Rare, is that Kinect Sports and Kinect Sports: Season Two were mandated by Microsoft, and were not something that employees of Rare wanted to work on. According to Yooka-Laylee creative lead Gavin Price, this was not true, claiming:
"Phil Spencer taking the mantle of Xbox is one of the best things that could have happened for Rare. Because he’s always said to people at Rare [as general manager of Microsoft Studios], ‘Do what you want to do and we’ll back you,’ and he’s always stayed true to his word in that regard. It was people in Rare’s management at the time who said: ‘Well, Kinect is a great opportunity for the studio – go all in on it.’ So when executives at Microsoft see that the management team are passionate about doing that, they back them. Microsoft to their credit did that, and perhaps the story online isn’t quite reflective of the truth."
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In 2007/2008, Rare started development on a game called Avatar Sports. It was going to use a special motion controller similar to the Wii. After Microsoft revealed Project Natal (Kinect), Rare salvaged parts of the game to create a new IP for the Kinect. This ultimately became Kinect Sports.
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