Rare is working on projects beyond Sea of Thieves as the British studio moves under Activision in Microsoft’s latest Xbox restructuring, according to a new report from The Game Business. Christopher Dring says Rare remains active on additional projects following the cancellation of Everwild, although no titles, release windows or other details have been disclosed. Microsoft and Rare have not announced any of those projects publicly.
The information comes as Microsoft reorganizes several of its first-party studios under Activision and Bethesda. Rare and Age of Empires production group World’s Edge are moving under Activision, while Obsidian will report to Bethesda and Turn 10 is being folded into Playground Games. The broader Xbox restructuring also includes 268 job cuts and major changes to Halo development, with Activision taking a central role in the franchise’s future.
Dring reports that Rare has also experienced some cuts within its central operations team as a consequence of the organizational change. However, the studio is not being reduced solely to supporting Sea of Thieves. The Game Business specifically states that Rare is working on other projects, making the future of those unannounced efforts one of the more notable questions created by its new position beneath Activision.
The report does not identify what those projects are or indicate whether they involve new intellectual property, existing Rare franchises or smaller experimental productions. It also does not provide development stages, team sizes or launch targets. Because Rare will now report through Activision, its future projects will operate within the new organizational structure, but Microsoft has not publicly explained how approval and funding decisions will work for individual Rare games.
Rare entered the restructuring after a difficult period surrounding Everwild. Microsoft canceled the long-running project in 2025, resulting in redundancies, while Rare reportedly reduced its use of outsourcing and shifted some employees onto Sea of Thieves to lessen the impact. Everwild had been announced in 2019 but never received a release date despite multiple public appearances and years of development.
Sea of Thieves consequently remains Rare’s only publicly confirmed active game. The shared-world pirate title continues receiving seasonal updates, including Season 21, which launched on September 17, and is available across Xbox, PC and PlayStation. Rare describes the game as one of the studio’s most successful new properties, although The Game Business reports that its performance has been declining over the past few years.
The Activision move also carries an unusual historical connection. When Nintendo opted not to purchase the remaining stake in Rare in 2002, Microsoft and Activision emerged as the final two bidders for the studio. Microsoft ultimately acquired Rare for $375 million, bringing franchises including Banjo-Kazooie, Perfect Dark, Killer Instinct and Conker into its portfolio. More than two decades later, Rare now sits within an organizational structure led by the company that once competed to acquire it.
Microsoft’s wider strategy appears focused on consolidating development around its largest publishing organizations. Activision is also taking a leading role in Halo, while Bethesda is gaining oversight of Obsidian. The Game Business reports that Xbox is attempting to streamline operations after years of acquisitions, slower-than-expected Game Pass growth and pressure on the profitability of its gaming division.
For Rare, the most important detail is that development beyond Sea of Thieves has not stopped following Everwild’s cancellation. What those projects are, and which ultimately progress far enough to be announced, remains unknown. Until Rare or Microsoft provides further details, the report only establishes that additional work is underway inside the studio as it begins operating under Activision’s oversight.
