Exactly 24 years ago today, Microsoft acquired Rare, a prominent British game development studio, ending its long-standing partnership with Nintendo and making all future Rare games exclusive to Microsoft's Xbox consoles. This move, which shocked many fans, marked a significant shift in the gaming industry and is now seen by some as a contributing factor to the challenges Microsoft has faced with its Xbox brand in recent years. Recently, Microsoft has restructured its gaming division, placing Rare under the control of Activision, a major game publisher known for franchises like Call of Duty.
Rare, originally founded in 1983 as Ultimate Play The Game, became one of the most celebrated studios in the UK. It gained international fame through its partnership with Nintendo, creating beloved titles such as Banjo-Kazooie and Diddy Kong Racing. Although Nintendo did not fully own Rare, it held enough influence to classify the studio as a "second-party" developer, meaning it worked closely with Nintendo to create exclusive games for their platforms. Microsoft's acquisition of Rare was unexpected, as Nintendo did not attempt to block the deal, despite Rare's success with Nintendo's consoles.
At the time, many believed that Rare's move to Microsoft's Xbox would bring new opportunities. However, the transition did not go as smoothly as expected. Rare's debut on the Xbox, Grabbed by the Ghoulies, failed to capture the attention of gamers who were more familiar with Microsoft's other hits like Halo: Combat Evolved. While some nostalgia for Rare's earlier work, such as Viva Piñata, kept the studio afloat during the Xbox 360 era, its games struggled to gain traction on the Xbox One. Microsoft's focus on the Xbox One as an entertainment hub, rather than a gaming console, further complicated Rare's position.
In recent years, Microsoft has shifted its strategy, acquiring other game studios like Obsidian Entertainment, Bethesda, and Activision Blizzard. However, this expansion has had mixed results, with some studios being shut down and thousands of employees affected. Meanwhile, Rare has found limited success with Sea of Thieves, a popular online game that has kept the studio afloat. However, this focus has left Rare largely stuck working on a single game for the past eight years, with other projects like Battletoads and Everwild either underdeveloped or canceled.
Now under Activision's ownership, Rare's future is uncertain. There are concerns about whether the studio will maintain its creative independence or be pressured to align with Activision's priorities, particularly those tied to its Call of Duty franchise. The original creators of classics like Banjo-Kazooie are no longer at Rare, and while fans may hope for a revival, the people most likely to push for such a revival have long since left the studio.
Microsoft's Acquisition of Rare and Its Impact on Xbox's Trajectory
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Original sources:
- 🇬🇧Metro UK



