Xbox Studio Rare Transitions to Activision Leadership Amid Multiple Unrevealed Projects

Rare has been transitioned to Activision's leadership as part of Microsoft's Xbox reorganization announced this week. While Rare remains an Xbox-owned studio and continues to receive Microsoft funding, the legendary developer will now report directly to Activision rather than Xbox Game Studios.

According to a report from The Game Business, Rare is currently working on multiple projects beyond its live-service pirate game Sea of Thieves, though details remain undisclosed. The studio's workload expanded after consolidating staff from cancelled projects. Rare had shut down Everwild in 2025, which resulted in some layoffs, but the studio mitigated further cuts by reducing outsourcing and reassigning personnel to Sea of Thieves development.

The organizational shift has included reductions to Rare's central operations team. Activision will now evaluate whether Rare's unrevealed projects move forward, with The Game Business noting that continuation decisions rest with Activision leadership.

Sea of Thieves has performed reasonably well commercially but has experienced declining player numbers in recent years. Rare's last major release before Everwild's cancellation was Sea of Thieves itself, and the studio has not shipped a new flagship title since.

Industry observers note that Rare holds a unique position within Microsoft's portfolio, with extensive intellectual property and development heritage that has not been fully leveraged recently. The studio's classic franchises, including Banjo-Kazooie, represent potential opportunities. Activision's track record with legacy properties like Crash Bandicoot and Spyro has led some to speculate about possible directions for Rare's portfolio, though no official announcements have been made.