Oh man, remember how big of a "megaton" that was in the industry? I mean, it happened right after Rare's absolute dominance during the N64 generation. Everyone thought Rare's AAA game printing machine would continue crunching on the Xbox, and especially the 360. Still not sure why exactly it didn't go down that way, but it was fun to watch from the sidelines.
And now there's shit soda or whatever it's come to. I guess that's worth 400 million bucks.
What happened is Rare's games didn't sell, they made false promises with funding or release dates, and had internal issues getting in the way of great releases, or meh games that didn't light the charts. Some of the game cancellations were due to those very issues.
When you also step back and realize that many of Rare's non-Nintendo branded games didn't sell as much as people think they did it kind of makes sense. Goldeneye excluded, PD was riding off an ending wave, Conker was not hot, Banjo Kazooie didn't sell as much as people think it did while still being a big seller on the console, but the sequel, not so much. Several of their other games also were not really moving much software outside DK64 and DKR, but those games did usually score well and have great reception by N64 owners despite sales, which led to Nintendo's decision with Dinosaur Planet which led to Star Fox Adventures, and you could argue that's when it became obvious Rare didn't have the pull people hyped them to have.
Rare released a crap ton of games on Xbox 1 AND Xbox 360 and very few outside Viva Pinata, and PDZ did much selling, and PDZ did that with panned reception. Almost everything they put out flopped, MS even let them put games on the GBA (and DS iirc) and those didn't move the needle either.
Quite frankly the status Rare got from many N64 owners seems to be as artificial as many other things about the console. Not saying that Rare didn't make good games but people were clearly exaggerating how big they actually were and how many games or consoles were selling because of their games. Kinect Sports was already top 3 best selling Rare games a few months after launch. One could argue that Sea of Thieves is the most successful title rare has put out in terms of cash returns, and Kinect Sports series for sales.