It's not that Microsoft lacks passion, it's that they have other more important interests. The Xbox itself is an extension of Microsoft's internet goals. The only company that fully dedicates itself to the games is Nintendo
I´m sorry, but it still a sorry excuse.
Anyone that gets to any business needs to have passion about it.
I have to disagree on Nintendo being the only company fully dedicated to games, sure, they are the only one that only does video games, but Sony comes in strong second when it comes to passion.
Maybe is a Japanese thing...
As you probably know, the Playstation is Nintendo´s bastard son

It all started back in the 90´s, when Nintendo wanted to have a CD attachment for the SNES, in the likes of what Sega had.
They begun working with Sony to build that.
Seeing the failure the CD attachment was on the Sega Genesis (and eventually led it their demise a decade later), Nintendo pulled the plug on the project.
Rumors say that the real reason was that both companies were unable to come to an agreement on how revenue would be split, and Nintendo was going to partner with Phillips.
But the project was already in middle stage (it was showed at CES 91), so, Ken Kutaragi wanted to continue and release it....SONY DIDN´T WANTED IT, THEY WANTED TO CANCEL THE PROJECT.
Kutaragi wanted to so badly to release it and believed so much in the project, that he and his team had to be shifted from Sony's headquarters to Sony Music, a completely separate financial entity owned by Sony.
That´s the purest form of passion, to go against your own company to make what you believe in.
But Rare really isn't a loss. Even before they were bought by Microsoft, Rare was on the decline. When Rare was making core games for the Xbox brand, it was nothing but bomb after bomb after bomb. And in 2007, the Stamper brothers left and most of the original guys who made Rare great were gone. But when Microsoft paid $375 million for the studio, they can't just shut it down, so they rightfully repurposed them.
Like i said, Microsoft killed Rare.....they started to suck the moment they got bought.
Before being bought they were on decline? Hardly.
You do know that Conker's Bad Fur Day for the N64 was made only two years before Grabbed by the Ghoulies, right?
And Perfect Dark was released the year before...and the year before Grabbed by the Ghoulies they released Star Fox Adventures (which was never meant to be a Star Fox game, but rather called Dinosaur Planet, featuring Saberman, one of their oldest characters)
Rare is the oldest developer still in existance.
They were founded by the Stamper brothers in 1982 and called Ultimate Play the Game, they were seen as the best developer in the 80´s, making games for several platforms, but officially born on the ZX Spectrum.
Then they changed they name to Rare in 1988 and the rest is history....Microsoft never gave them the respect they deserved, they only bought them because they were loved, not because of their quality.
So, of course that everyone that was anyone on that company left.
IMO, Rare is the biggest crime and best example of how little Microsoft care for this business, they maimed one of the best developers since ever, they destroyed a important part of video game history.
Am i being overdramatic...probably....but it´s true nevertheless.