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Ken Lobb, of Microsoft Game Studios, has confirmed that Rare is working on two titles for the Nintendo DS platform, but gave no indications as to what those titles were, nor whether we'd recognize any of the characters.
Rare did continue to develop games for Nintendo's Gameboy Advance (published by THQ) after Microsoft aquired the company, however, this news is the first indication that Rare will continue to develop games for the next generation of Nintendo handhelds, which will, coincidentally, be going up against Sony's handheld, the PSP. Considering those at Microsoft most likely view Sony as their strongest rival in the video gaming realm, continuing Nintendo handheld support may not be as altruistic as it seems.