Anyone who has half a brain-cell knew that the inventiveness left with the Stamper Brothers (founders of the company, who came up with many grand ideas).
I'll chuck into the mix: Rare have always been a hit-or-miss company riding on the coattails of their 90s games. If you actually bother to look at the list of games that Ashby Code & Graphics/Ultimate Play The Game (which was their former name) and Rare have produced, you realise how much shovelware they have produced - some being so bad they've been covered by AVGN!
Back at the height of Rare, they had 3 teams working, so they could release 3 games per year. Now, with the HD age, the costs and complexity got so large that they were struggling to produce 1 game, let alone 3. Sadly, the cost of producing big-budget games is slowly becoming less and less viable to many companies out there - to the point that a single game could make or break even the big producers out there (Free Radical was another good example of make-or-break game production).
I hope you survive, Rare, even if you have to go back to your roots (in this modern age, that would be XBLA games).