According to Kotaku, Microsoft officials allege that Nintendo president Satoru Iwata blocked the release of a GoldenEye port on Xbox Live Arcade because the game originated on Nintendo hardware.
Microsoft claims Nintendo was unwilling to reach an agreement, this despite a favorable compromise for both companies that included a profit sharing deal. Nintendo owned a minority stake in Rare before Microsoft purchased the developer in 2002.
Unconfirmed rumors of a GoldenEye XBLA port surfaced last week, in which multiple sources reported that the game was already in development and less than two months from release before Nintendo purportedly canned the deal.
Nintendo was not immediately available for comment.