It's so flippin tragic... all of these interviews coming out are saying the same thing: the Microsoft buyout was the beginning of the end of Rare. One can only dream about the incredible GameCube library and on that could have come from them....
I blame Nintendo more than i blame Microsoft, they could have bought the company outright but they offered (from what i read) only a fraction of the companies worth for total ownership. If they had ponied up the cash for what was one of their best developers things would have gone on smoothly, but alas that didn't happen. Microsoft do deserve a large lump of the blame for whats happened, they bought a great company and thought they knew better and forced change where it wasn't needed (if it aint broke don't fix it as they say, MS forgot that), but Nintendo aren't without their fair share of the blame here.
You could also say Big N quietly unloaded something they knew would take a downward turn. It isn't like some of their great talent hadn't already left. I can't help but feel Rare would be in the same position it is now.
I did love Rare's titles on the 64, their Perfect Dark Zero games was alright for me... It's just so bloody shit what's happened to them.