Why I think Microsoft heavily contributed to Rare's downfall.

[Veknoid_Outcast]

I don't think it's fair to use Grabbed by the Ghoulies as an example of Microsoft's mismanagement. That title was originally in development for GameCube, but production was rushed after the buyout in 2003. It was a victim of the chaos surrounding the transition from Nintendo to Microsoft.

In general I'd say Rare's decline was the result of three things: Microsoft's mismanagement of the studio and its properties, the exodus of key personnel, and the loss of Nintendo as a benefactor.