GamesTM magazine recently reported that Rare was closing down their handheld division, apparently. As it turns out, that's not the case at all.
Over on the Rareware Central forums, a post from a Rare staffer tells a different tale:
"The handheld team wasn't "closed down" quite as you put it - you'll be pleased to hear that we still have all the talent on-site (even if they're not all in the same barn) and they're all hard at work on new projects. What I can confirm is that none of these projects are for handhelds, so it'd be true to say that at present, we're currently not developing any handheld games...
Might we return to that field in the future? Well, we're certainly not ruling that out. However, to the best of my knowledge there's nothing in the pipe at the moment."
There ya go then. More through the link.