Rare Studio Shake-Up: Key Departures and Game Cancellations Rock Microsoft Studios

In a significant shift for Microsoft’s gaming division, several highly experienced developers have departed from Rare—the renowned British studio behind classics such as Donkey Kong Country and Banjo-Kazooie.

These departures coincide with a wave of game cancellations and layoffs affecting multiple subsidiaries under the Microsoft Studios banner. Rare, an industry mainstay since its Nintendo 64 successes, has confirmed the exit of Gregg Mayles, who served as director for Banjo-Kazooie and contributed to designing Donkey Kong Country.

Mayles’ tenure at Rare spanned over 35 years, marking the end of an era for the studio's creative leadership.

Sources report that his departure follows closely on the heels of the cancellation of Everwild, an ambitious new intellectual property that had generated significant anticipation since its announcement.

Microsoft acquired Rare in 2002, making the developer a cornerstone of Xbox Game Studios’ creative output for over two decades. Additionally, Louise O’Connor—long-time executive producer and art designer credited for her work on Conker’s Bad Fur Day and Banjo-Kazooie: Nuts & Bolts—has left Rare.

Wil Overton, a veteran game artist known for his collaborations with Rare and his work on Everwild, is also seeking new opportunities following the project’s cancellation. Recent reports from Windows Central confirm that the changes extend beyond Rare.

Microsoft has cancelled the reboot of Perfect Dark and shuttered its developer, The Initiative.

The revival was originally announced in 2020 and represented a key partnership between The Initiative and Crystal Dynamics, aiming to breathe new life into the spy-thriller series that started on the Nintendo 64.

Despite a brief reappearance at Summer Game Fest 2024, the project was notably absent from Microsoft’s most recent conference, raising concerns ahead of its cancellation. Other parts of Microsoft’s development ecosystem are feeling the impact as well.

ZeniMax Online’s unreleased MMORPG, internally codenamed Blackbird, has been cancelled, and layoffs have extended to well-known subsidiaries such as Raven (responsible for multiple Call of Duty titles) and Turn 10, the studio behind the popular Forza Motorsport racing series. These changes underscore a period of transition for Microsoft Studios, reflecting not only the challenges of triple-A game development but also the evolution of industry priorities.

As fan communities react to the loss of beloved projects and veteran talent, the future of studios like Rare and the fate of iconic franchises such as Banjo-Kazooie and Perfect Dark remain pivotal questions for both Microsoft and the gaming industry at large.

Rare Microsoft Xbox Xbox Game Studios Perfect Dark Microsoft Studios developers Everwild Banjo-Kazooie Donkey Kong Country Gregg Mayles Louise O’Connor Wil Overton The Initiative Crystal Dynamics ZeniMax Online Blackbird Raven Turn 10 Forza Motorsport Call of Duty