Amidst the impending mass layoffs in Xbox's gaming division, new reports have emerged about potential problems at Rare studio, known for Sea of Thieves. According to the EDGE Knowledge newsletter, the developer may be among the teams affected by the next wave of cuts. Sources indicate that Microsoft plans to lay off over 1,000 employees from its gaming division.
EDGE editor-in-chief Patrick Garratt later wrote on Bluesky that he received information that "Rare is under threat." Commenting on the situation, he also called what is happening "horrible."
However, there is no confirmed closure of the studio yet. Sources note that Xbox management has repeatedly changed its decisions in a very short time recently. For instance, Giant Bomb journalist Jeff Grubb previously reported that Obsidian Entertainment was allegedly considered for closure or sale, but Microsoft management later abandoned these plans, according to his information.
Rare is already going through a difficult period. After the cancellation of Everwild's development, the studio underwent restructuring: executive producer Louise O'Connor took on the role of Chief of Staff at Xbox Game Studios and later left the company. Rare also previously lost studio head Craig Duncan, who went on to lead the Xbox Game Studios division.
Despite the uncertainty surrounding Rare's future, Sea of Thieves is expected to continue. However, the volume of support and the regularity of new content releases are already noticeably lower than in the first years after its launch.