I'm really not sure why people are getting so huffy-puffy about this rare thing. I admit, at first I was pissed, and I sat in a slump for a couple of days until I realized a few things.
1.) Nintendo was the one that decided against the contract with rare, and for good reason too. Quite simply, rare has been losing money for Nintendo for the last few years, steadily decreasing. Nintendo sold their 49% to microsoft (who had the highest bid).
2.) MOST of Rare has split off in some form to work with other groups. Take for example Free Radical who is second party to Eidos and makes a game called "Timesplitters 2". Most of the GE (golden eye to you video game illiterates)/PD (Perfect Dark) team left and started the new company. Another company is called Zoonami, and thus far has committed full support to Nintendo. So far they have made one game for the system and are in works to make a FPS as well, exclusive.
3.) Has anyone played Star fox adventures? I bought it and took it back 3 days later because, quite honestly, I found it to be one of the more boring games I've played to date on my gamecube. I don't know why people are giving it hype. Outside of the incredible visuals, the game is hugely linear, and, from what I found, you spend the entire game finding object A to open door B. There was no "adventure", and the exploration sucked ass.
Now, why would microsoft pick up a company like this? Popularity. Rare WAS something great at one time, but part of that greatness was due to Nintendo for allowing literally 1 and 2 year delays, and personal help from Shigeru Miyatomos EAD staff. I doubt very strongly Microsoft is going to give that kind of time and we all know the kind of games Microsoft create. Back to the point though.. I think Microsoft bought Rare to show the gaming comunity that they are the "new thing", and that they mean business. I feel sorry for those who think that Nintendo is now doomed, and Rare is still a good company.
Rest In Peace Rare. Good luck with a has been company microsoft.