Activision Now Oversees Rare, 24 Years After Losing Studio Bidding War

Microsoft has reorganized its gaming division, moving Rare under Activision's oversight as part of ongoing restructuring efforts tied to a planned 3,200 job cuts across fiscal year 2027.

The reassignment carries historical weight. In 2002, after Nintendo declined to purchase the remaining 51% of Rare, a bidding war erupted for the developer. Xbox ultimately prevailed in September 2002, acquiring the studio for $375 million. Activision was among the major parties competing for the acquisition, according to The Game Business co-founder Chris Dring.

Now, more than 24 years later, Activision has become Rare's parent company through this internal restructuring. The arrangement consolidates gaming IP under one publisher. Rare's flagship platforming characters, including Banjo and Kazooie, now sit alongside other iconic franchises under Activision's banner, joining Crash Bandicoot and Spyro the Dragon.

Rare's output has fluctuated considerably since the 2002 acquisition. The studio released notable titles including the Viva Pinata series and Banjo-Kazooie: Nuts and Bolts, though neither matched the commercial or critical success the developer achieved during the SNES and N64 eras. More recently, Rare's live service title Sea of Thieves has found sustained player engagement and commercial success.