With Jet Force Gemini announced for the Nintendo Switch Online expansion pack and Banjo Kazooie and GoldenEye already on the service it is clear that Nintendo and Microsoft are able to work together to get games added to the library. I fully expect to see Banjo Tooie, Blast Corps, and even Perfect Dark eventually added. I think the real question is whether Diddy Kong Racing and DK 64 will ever go up. Diddy Kong Racing is arguably the most beloved Rare game after the Banjo Titles, and DK 64 is iconic in its own way, though much less universally beloved.
I think the sticking point is that the other games are all available on Xbox too. Rare Replay has had the Banjo games and Jet Foce Gemini since it launched in the early days of the Xbox One. GoldenEye went up at the same time on Xbox and Nintendo. However I do not see Nintendo being willing to put Donkey Kong games on another console, even if the companies are friendly. Nintendo will let Microsoft put Minecraft, Ori, and Quake games on the Switch but it is very protective of its IP and it has not been willing to let anyone else touch it since the days of the Phillips CD-I. I don't see Diddy Kong or DK 64 going up on Xbox...ever.
The question is whether Microsoft will sign off on the games with no reciprocation. I'm not sure. I think they probably should, since it's not like not having Diddy Kong Racing on NSO actually helps Microsoft in any way, and they might be able to use it as a gesture of good will to further improve their relationship with Nintendo, which has been useful for them in a number of ways (Minecraft sells great on Nintendo platforms and they have worked with Nintendo for special DLC packs; Nintendo didn't get in their way in the Activision merger.)
On the other hand I understand that Microsoft wants to claim Rare's legacy for its own and it might stick in its craw to have more games on Nintendo platforms but not Microsoft platforms even after gestures of good will like letting Nintendo put Banjo in Smash and make an Amiibo. Already the Donkey Kong Country games are on NSO but not Xbox, and are a huge missing part of Rare's legacy on the Xbox platform, though I think the ownership rights of those are purely with Nintendo anyway.
It's worth noting that DK64 did show up on Wii U virtual console (so maybe Nintendo owns the full rights? I don't believe so) so the deal has been made before, but that was prior to Microsoft really focusing on building out its legacy content.
I think that if Microsoft is serious about making games accessible they should just sign off on these games going up on the service. Especially now when Microsoft's own IP vault is brimming with Activision games that it could bring out on Xbox if it wanted to.
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