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Retro Studios was founded in 1998 by Jeff Spangenberg, after leaving
Acclaim who bought out his company
Iguana Entertainment. The company was hired by
Nintendo to make mature games for their upcoming console, the
Nintendo GameCube.
Months prior to the release of their first game
Metroid Prime, Nintendo bought out Retro Studios from Spangenberg, making the company a first-party developer. The reason for Spangenberg’s removal was due to being usually absent as a manager and for using the company’s servers to host an adult website that featured him posing in a hot tub with scantily clad women.
Spangenberg would later create Topheavy Studios, whose only game released was
The Guy Game, which would also get Spangenberg in trouble for sexual content, this time featuring a minor as one of the women that could strip naked.