http://www.notenoughshaders.com/2012/08/21/donnchadh-murphy-chats-about-rare/
It's a fairly long read. This is an interview with Don Murphy who was a 3D modeler for Rare during his 13-year tenure. His thoughts on Microsoft's apparent interest in using Rare to help aim at a younger market.
His most notable quote:
"There [were] numerous projects that were put forward that I believed would have been huge hits, but MS rejected them one after the other."
Three titles slated for Gamecube: Perfect Dark Zero, Kameo: Elements of Power, and Donkey Kong Racing were discussed but were ultimately cancelled due to Microsoft's purchase. Furthermore, other cancelled titles included Savannah, Butcher, as well as a possible Killer Instinct 3 were then proposed but Don Murphy clarified that they [Microsoft] were more interested in broadening their demographic than make another fighting game.
It was also mentioned that, "Conker began development as a family game called Conker's Quest/Twelve Tales, and then changed into a violent platform game with raunchy rumor." He explained, "Back in those days Rare was the golden child, so when they announced that we were changing direction there was no objections, none that I knew about anyway. I’m so glad it did change, because “Twelve Tales”, to put it politely, was not a good game. Chris Seavor took the reins in BFD and took it a direction nobody expected."
In addition, there were apparently rumors regarding Rare's proposal for Donkey Kong 4 and Banjo Kazooie for the Nintendo DS, but Nintendo passed on the idea. Don Murphy was not aware of it, but admitted it may have been likely.
EDITTED for 'DK Racing' clarification. My fault.
