After being sold to Microsoft by Nintendo, Rare’s currently focussed on Kinect titles more than anything. Not that it’s really their fault, however.
According to former Rare composer Grant Kirkhope, Microsoft is totally responsible for Rare’s current state.
I think Rare have completely f**ed themselves. And – it isn’t their fault; it’s Microsoft’s fault. They have completely ruined that company, and it makes me cry every day of my life.
These comments were made during a video interview, somewhere around the 2 hour 11 minute mark.
It’s hard to disagree. Even when they weren’t developing Kinect Adventures and having Kameo 2 canceled, Rare’s titles for the XBox and XBox 360 paled in comparison to their works for Nintendo. Where they go from here though is completely up to Microsoft.