Rare Moves Under Activision: Job Cuts Reported, New Projects Underway

11 October 2026
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6 min.
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Rare Moves Under Activision: Job Cuts Reported, New Projects Underway

Summary:

Rare has been shifted to report under Activision as part of Xbox’s recent studio reshuffle, and that change has coincided with reductions in the studio’s central operations team. The move doesn’t mean Rare is finished with creative work – sources state the studio is working on projects beyond Sea of Thieves, though details remain private and Activision will have input on which projects move forward. This report connects the reorganisation to a wider Xbox strategy to consolidate studios under publishing umbrellas, a plan that followed large-scale layoffs and the earlier cancellation of Rare’s Everwild in July 2025. Fans should expect evaluation of Rare’s in-progress projects, possible changes to resource allocation, and continued updates on Sea of Thieves as Rare adapts to new oversight.

What changed in Xbox’s studio reorganisation of Rare?

Xbox recently carried out a significant reorganisation that moved several first-party teams into different reporting lines. Among the headline moves, Rare and World’s Edge were placed under Activision, while Obsidian was moved to Bethesda. The reshuffle came alongside another round of job cuts across Xbox teams and a corporate memo explaining the rationale – a drive to simplify publishing structures and improve margins. For Rare, the immediate practical outcome was a change in leadership reporting and a streamlining of some central operations functions. That does not alter Rare’s ownership by Microsoft, but it does change who evaluates and greenlights projects, which can influence priorities and timelines for games in development.

How the move affects Rare’s operations and staff

Saying a studio now reports to a different publishing arm is more than a headline change – it can affect budgets, staffing, and where talent is focused. Reports indicate Rare saw cuts to its central operations team as part of the reshuffle, which typically handles cross-project coordination, HR support and studio services. When those roles shift, operational responsibilities often move to the parent publishing arm or are redistributed internally, which can slow day-to-day processes in the short term and require staff to adapt. Developers generally try to protect core creative teams, but cuts to support roles still affect morale and workflow. For Rare, that has meant reassigning some staff to existing live projects and evaluating which new efforts will continue under Activision’s guidance.

Why Rare was moved under Activision

There are a few reasons a company might change reporting lines for studios, and the move involving Rare appears to be part of a larger strategy by Microsoft to group studios under established publishing umbrellas. Activision is a long-running publisher with experience in managing big live-service franchises, and Rare’s Sea of Thieves operates as an ongoing live service as well. Putting Rare under Activision gives Microsoft the option to centralise certain publishing functions, marketing muscle, and live-operations expertise. The change also aligns with wider cost-control measures after a period of layoffs and project cancellations. Ultimately, such moves aim to boost efficiency and free up resources for higher-priority projects, although they also shift decision-making away from the studio’s historical chain of command.

What projects Rare is working on now

Publicly, Sea of Thieves remains Rare’s best-known title, and the studio has spent years supporting it with seasonal updates and live events. Behind the scenes, sources say Rare is developing additional projects beyond Sea of Thieves, but those efforts have not been publicly detailed and will likely be reviewed by Activision for commercial fit. After Everwild was cancelled in July 2025, Rare moved teams and contractors where needed to steady the studio. While the exact nature of the new projects is private, the studio’s track record suggests a mix of live-service support, smaller-scale experiments and potential revivals of classic ideas. Activision’s role will be to assess which projects get continued funding and which will be shelved or reworked.

Sea of Thieves has been a rare success as a long-running, fun-first multiplayer title that built sustained engagement through updates and community events. That said, player interest has shifted over time and tracking services show notable fluctuations in concurrent players, especially on PC storefronts. Live-service games often see cyclical peaks around major updates and quieter periods between seasons, and Sea of Thieves follows that pattern. With Rare now reporting under Activision, how Sea of Thieves fits into broader portfolio plans will be important to watch – Activision may prioritise monetisation strategies, cross-promotions or platform expansion to stabilise or grow engagement, while Rare will still handle in-studio development and update cadence.

The legacy of Everwild and its cancellation in 2025

Everwild was a long-anticipated original IP from Rare that was quietly cancelled in July 2025 amid wider Xbox layoffs. The cancellation resulted in redundancies and left parts of the team reassigned to Sea of Thieves and other work. Everwild’s cancellation also serves as a reminder that internally developed projects can be vulnerable when corporate priorities shift or when a studio faces financial pressure. For fans and industry watchers, Everwild’s end helps explain some of the staffing and focus changes at Rare in the months that followed, and why the studio has had to balance live-service responsibilities with exploration of new projects under tighter headcount conditions.

What Activision oversight could mean for Rare’s IPs

Activision is experienced at managing high-profile franchises and running large-scale live operations. Under its oversight, Rare’s projects may receive more structured commercial scrutiny, with an emphasis on longer-term revenue potential and cross-franchise opportunities. That could mean more resources for proven live titles, a push toward multiplatform releases where sensible, and potential collaborations across Activision’s publishing teams. For Rare’s classic IPs, the change could open doors to broader exposure – but it also raises questions about creative control and whether niche, experimental ideas will be prioritised. Fans can expect clearer business-focused reviews of Rare’s pipelines and more public signals about which projects will proceed.

What fans should watch next

If you follow Rare and Sea of Thieves, the immediate things to watch are official updates from Microsoft and Activision about project evaluations, any public statements from Rare about staffing and focus, and how Sea of Thieves’ update schedule evolves under the new structure. Keep an eye on developer streams and community channels, as the studio often uses those to explain design and service changes. Industry outlets will also report on follow-up moves, such as hiring activity, project greenlights or further reshuffles. For those curious about Rare’s long history, it’s a reminder of the studio’s roots on platforms like the Nintendo 64 and how its path since then has included big shifts in ownership and focus. If you want regular Nintendo-focused coverage alongside broader industry moves, check out the homepage at NintendoReporters.

Conclusion

Rare’s move to report under Activision is operationally significant but it doesn’t erase the studio’s identity. There are real consequences for staff and for how projects are assessed, yet the studio is still developing new work beyond Sea of Thieves. Expect further clarifications from corporate notes and developer updates, and watch how Activision balances commercial pressure with Rare’s creative strengths as decisions about project continuations are made.

FAQs
  • Is Rare still owned by Microsoft?
    • Yes. The reshuffle changes reporting and publishing oversight but Rare remains an Xbox-owned studio within Microsoft’s corporate group.
  • Did Rare lay off staff because of this move?
    • Reports indicate cuts to Rare’s central operations team happened alongside the reorganisation. Core development teams have been protected where possible, but support and coordination roles were affected.
  • Was Everwild cancelled?
    • Yes. Everwild was reported cancelled in July 2025 amid larger Xbox-wide layoffs, and some Rare staff were reassigned following the project’s end.
  • Will Sea of Thieves continue to get updates?
    • Sea of Thieves has continued receiving updates historically and is expected to remain supported, though how resources are allocated may change under Activision’s oversight.
  • Could Rare’s games become multiplatform under Activision?
    • That is possible. Activision’s involvement may push evaluations toward broader platform releases, but any multiplatform plans would depend on project fit and corporate decisions.
Sources
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