Yes they are not a big studio but if they want to develop more than 1 game and Phil believes their titles have potential he will allow them to expand. In past Rare has always been famous for different titles they developed. I think same can be done this time also however I doubt it will happen.

I want them to develop a new ip and a kart racer

Microsoft has many racing ips they should release one iteration of each and circle every 3 years imo. Why not release Rallisports and Project Gotham... they also should release a Karting game with challenges and the ability to play with our avatars. A bit like they did with Joy Ride but with more budget. With a track editor.

Don't games studios just hire people on contracts and those people leave after the game or project is finished?

I'm happy with a kart racer. Anything like Diddy kong racing will be amazing. 

Probably if the next project is successful they will again expand the studio, personally I think they should focus on one project only. And let a few people do some brainstorming on new ideas for the next one.

Yeah Rare should just be a 1 team studio, if their next game turns out great then maybe they could expand into a 2 team studio. MS really needs a studio like Naughty Dog or something that can make multiple new games at the same time. (I'm not saying they'd be as good as Naughty Dog)

Rare originally said 2 teams. THey currently have about 100 people im pretty sure. They also have a lot of interns as well.

Always aim higher.

Anyway, I have soft spot for European based developers... I hope they step it up.

Would be nice, for that to happen they would have to make more than Halo though

Sonic & Sega All-Stars is actually quite solid. I would dig a Xbox one version of it.