While reports of Obsidian Entertainment facing closure were incorrect amid impending layoffs at Xbox, it seems that Sea of Thieves developer Rare is in trouble. EDGE’s Knowledge newsletter (via ResetEra) reports that the studio could be “affected”, with the overall cuts reportedly affecting “more than 1,000 staff.”
Editor-in-chief Patrick Garratt later posted on Bluesky that he “Was told last night that Rare’s on the block.” He later responded to a post calling the situation “grim” by adding, “It’s all horrible, yeah.”
Of course, it’s worth noting that the studio may not necessarily shut down, and not just because of the potential for a buy-out or another publisher acquiring it. Xbox has seemingly been changing its mind “within 24 hours” when it comes to recent decisions. Giant Bomb’s Jeff Grubb claims to have heard that Obsidian was shutting down or being sold off at one point. Leadership from its parent company may have since changed course and decided to stick with it for the time being.
Whether Rare ends up shuttered or not, this wouldn’t be the first time we’ve heard of layoffs. Following the cancellation of Everwild, the studio faced broader restructuring, with executive producer Louise O’Connor becoming Chief of Staff at Xbox Game Studios. Of course, she’s since departed alongside Craig Duncan, who served as Rare’s studio head before leading the first-party studios.
Sea of Thieves is likely to continue, though support and content updates are nowhere near what they were in the initial years. As always, stay tuned for more updates, as layoffs seemingly loom on July 6th.
