Nintendo To Buy Stake In British Firm

Nintendo Co. Ltd. has agreed to buy 25 percent of Rare Toys and Games Ltd., locking in the British company as an exclusive developer for Nintendo’s video-game machines.

The multimillion-dollar deal marks the first time Nintendo has invested in a video-game company outside Japan, and reflects the growing importance of software development in an industry that has long been dominated by hardware manufacturers.

The small, privately held company is best known as the creator of the arcade game Killer Instinct and of Nintendo’s hotselling Donkey Kong Country.