I think the belief that Rare were on some kind of irreparable downward spiral on the eve of their transfer to Microsoft is a ridiculous notion. The early wave of software for the Xbox 360 was diverse, creative and reminiscent of some truly beautiful ideas. Controversial as it may be, I think there are excellent grounds to argue games like Viva Piñata as candidates for game of the generation. Even disappointments such as Perfect Dark Zero were colossally underrated, for a launch tittle the depth of that game stands far and beyond many shooters of that generation.
Perfect Dark Zero was a better game than both Halo 4 and Killzone 2, try and argue otherwise.
So what went wrong? Microsoft.
Its simple really, and it fits the narrative very well. Rare were an absolute powerhouse under Nintendo. The scope of their projects, the diversity of the games they produced and speed at which they delivered them is even to this day unlike anything that has been seen in this industry.
1996-2000


N64:
- Goldeneye

- Diddy Kong Racing

- Banjo Kazooie
- 
Jet Force Gemini
- 
Blast Corps
- 
Killer Instinct Gold

- Perfect Dark

- Mickeys Speedway U.S.A

- Banjo Tooie
Game Boy:


- Donkey Kong Land III

- Conkers Pocket Tales

- Mickeys Racing Adventure

- Dinky Kong & Dixie Kong
- 
Donkey Kong Country

- Perfect Dark
Look at that list, holy fucking shit. Nine top tier console games and six handheld games in four years, thats nearly four fucking games per year. First person shooters, third person shooters, platformers, fighting games, racing games, action games. To this day I still dont really know how they did it. They had under two hundred people working for them. Its insanity. Do you think Nintendo misses that output? They absolutely do, and anyone who suggests that Retro Studios fills that void is analytically incompetent. Even one Rare quality Wii U & 3DS title per year would be a huge boost for Nintendos exclusive software, most importantly because Rare offered diversity outside of Nintendos traditional games. For this reason the studios complemented each other beautifully, and stand as the greatest partnership in this industrys history.
Would Rare have continued to thrive under Nintendo? Yes.
Nintendo, unlike Microsoft. Do not have a history of ruining studios. Nintendo have quite the opposite effect with studios in this industry and almost seem to have a multiplier effect on quality. We have seen time and time again that gimp studios such as Silicon Knights, Arika, Retro Studios, Next Level Games and Brownie Brown have all delivered titles well and beyond what they reasonably have the capacity to do independently. Were the Stamper brothers to stick with Nintendo, it is incredibly unlikely that Rare would be the shadow that they are today.
So wait, why is it Microsofts fault?
Rares output took a nosedive under Microsoft. Since their new partnership beginning in 2002, right up until the 360s release in 2005, Rare managed to deliver six Game Boy Advance titles under THQ and Nintendo, yet only two Xbox games under Microsoft; Reject title Grabbed by the Ghoulies and useless remake Conker: Live and Reloaded. It was immediately clear that the studio lacked direction under Microsoft.
Their first wave of software arrived in 2005 and consisted of Kameo, Perfect Dark Zero and Viva Piñata, good games which were creatively promising. Yet it was clear that Rares repertoire of intellectual property did not complement their new audience. Early Microsoft targeted older gamers in their twenties and thirties, Rares software primarily targeted kids, teens and occasionally young adults. Rares software had no room to breathe amongst their new audience and as a result sales were not excellent. What was even worse was that the titles that even sold reasonably well such as Perfect Dark, were pushed aside presumably in favour of IP such as Halo.
Banjo Kazooie: Nuts and Bolts was the last traditional title to be released under Microsoft and it was met with mixed reception. Not even given the chance to build their audience, Rares IP very quickly took a backseat in favour of being forced to follow Nintendos new direction into fitness. Large numbers of staff were laid off, key people departed and soon only Kinect titles were produced under Rare. With a new Killer Instinct title on Xbox One not even being developed by Rare themselves, it has reached the stage where it is suspect as to whether the studio is capable at developing even small scale traditional titles.
Microsoft failed to sustain Rares intense development cycle, they failed to support their intellectual property and ultimately failed to support the talent which thrived there. Despite four good games, Microsoft gave the studio virtually zero chance to prove themselves further and essentially nullified the talent of the studio.
People will defend Microsoft, but there is a clear history of poor management.
- FASA
- 
Ensemble
- 
343i

- Black Tusk

- Victoria
This is simply another which fits what is at this stage, a very obvious narrative.