Nobody does. But it's just an idea. 

Those arent high?  Well i guess pretty much most game studios should be gonig out of business then including Insomniac, Sucker Punch, and multiple other praised devs.  Had no clue 1 and 2m wasnt noteworthy.....

Bad business decisions leads to cutting staff. There is nothing good to say about it.

Considering Microsoft spent over 300m on Rare I don't think they wanted their games to sell 1-2m at best. Insomniac and Sucker Punch probably would have gone out of business a while ago had they not been making exclusive titles. Activision and EA shut down studios left and right for making those kinds of sales. If Rare was profitable at those levels, then I doubt MS would have restructured them and put them on Kinect. 

By the way what is your source for those sales numbers? I tried to look for it but I couldn't find it. 

Havent you heard, MSFT didnt tell them to do KSR.  Rare chose to which is hardly surprising considering Kinect Sports is there 2nd highest selling franchise outside of DOnkey Kong Country as far as im aware.

Lets not act like 1m+ sales is not notable  for an exclusive title.

http://www.vg247.com/2008/06/30/rare-sales-hit-100-million-mark/

Just wanted to revisit this because I never got a chance to reply.

Yes, people get fired and retire and whatever but the point I was making was that there are hardly any devs left from when they made their trad-core franchises, and two in the OP are bigshots from their past, so my conclusion is that it's unlikely that Rare is refocusing on the core. Rather, this news, coupled with the other interview about some kind of nokia platform really make me think they will focus on mobile.

Ok, the Rare news is actually good news....well except for the families of those laid off.

It means MS is done with motion games and most certainly this means Rare will revisit its older IPs.