Report: Xbox Studio ‘Rare’ Working On Various Projects, But Activision Will Decide Their Future

Microsoft has restructured its studio organization in a significant move that sees legendary developer Rare transition from direct Xbox Game Studios oversight to Activision control. The change was announced as part of a broader Xbox reorganization that also resulted in 286 job cuts across the division.

Rare, described as a unique studio within Microsoft’s portfolio, now reports to Activision rather than remaining under the Xbox Game Studios banner. Despite this organizational change, Microsoft retains ownership of the studio, and funding continues to flow through the company’s accounts. Rare is known for iconic franchises and a storied history in the gaming industry.

The move came as a surprise to many observers given Rare’s prominence within Xbox’s first-party studios. While the immediate practical implications remain somewhat unclear, the restructuring signals a significant internal reorganization at Microsoft’s gaming division. The transition is effective immediately.

This change occurs within the context of a larger shake-up at Xbox that includes multiple studio transitions and significant workforce reductions. The 286 job losses represent a substantial restructuring of Microsoft’s gaming operations. The broader reorganization appears to be reshaping how Microsoft manages its gaming division and its studios.

Sources