Rare Survived 40 Years and $375M Microsoft Buyout, but a New Rumor Says Its Time May Be Up

Alessio Palumbo
Characters from Rare games, including Banjo-Kazooie and Conker, are positioned against a 'Sea of Thieves' backdrop with the Rare and Microsoft Studios logos.
Rare has survived 40+ years and a $375M Microsoft buyout, but a new rumor suggests the storied studio's future may finally be in jeopardy.
How We Rate Rumors
  • 0-20%: Unlikely - Lacks credible sources
  • 21-40%: Questionable - Some concerns remain
  • 41-60%: Plausible - Reasonable evidence
  • 61-80%: Probable - Strong evidence
  • 81-100%: Highly Likely - Multiple reliable sources
RUMOR ASSESSMENT

80%

Probable

Xbox's dreaded mass layoffs and closures are now imminent (they should be formalized this week), and according to a new rumor, they might impact even Rare.

The news comes from a reputable source: journalist Patrick Garratt, cofounder of VG247 and now Editor in Chief of Knowledge, EDGE's weekly newsletter. The latest newsletter that went out a couple of days ago included this mention:

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Microsoft's Xbox division is bracing for potentially far-reaching layoffs as early as next week. According to The Verge, as many as five studios could be closed as a result, including Lyon-based Dishonored developer Arkane. Rumours suggest that more than 1,000 staff could lose their jobs, and we understand that Rare may be affected in any restructuring.

Garratt then doubled down on the rumor with a post submitted on BlueSky, in which he wrote:

Was told last night that Rare's on the block. Free one for you, friends.

Now, whether that means closure or significant layoffs is up for interpretation.

The British studio headquartered in Twicross, England, has been active for more than 40 years. Following the first few years, Rare partnered with Nintendo to create acclaimed games such as Donkey Kong Country, Banjo-Kazooie, and the Conker series, as well as the first-person shooters GoldenEye 007 and Perfect Dark.

The studio was Microsoft's first major acquisition after entering the gaming industry: on 24 September 2002, Microsoft purchased Rare for $375 million, acquiring the Conker and Banjo IPs in the process. Since then, Rare has released the following noteworthy games:

  • Grabbed by the Ghoulies (Xbox, 2003)
  • Conker: Live & Reloaded (Xbox, 2005)
  • Kameo: Elements of Power (Xbox 360, 2005)
  • Perfect Dark Zero (Xbox 360, 2005)
  • Viva Piñata (Xbox 360, 2006)
  • Viva Piñata: Trouble in Paradise (Xbox 360, 2008)
  • Banjo-Kazooie: Nuts & Bolts (Xbox 360, 2008)
  • Kinect Sports (Xbox 360/Kinect, 2010)
  • Kinect Sports Rivals (Xbox One, 2014)
  • Rare Replay (Xbox One, 2015, a compilation of 30 classic Rare titles)
  • Sea of Thieves (Xbox One/PC, 2018)

Most of them didn't sell well or even receive a particularly positive critical reception, except for Viva Piñata and Sea of Thieves. The latter game was quite successful in its own right and still gets updated, though the twentieth season that launched a couple of weeks ago introduced Custom Seas, a private sandbox and a suite of creative tools that allow players to set the rules governing the game. Fans believe this may signal the end of major new updates from the developer.

There's also the fact that Everwild got canceled during last year's round of Xbox layoffs after reportedly spending over a decade in development. Xbox's new management, specifically CEO Asha Sharma, is trying to optimize the division by cutting whatever doesn't work and redirecting funding to the biggest IPs. Let's hope Rare survives, though, as it would be a shame to see another historic studio closing.

Alessio Palumbo Photo

About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.

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