Microsoft acquired Rare in 2002 to strengthen Xbox game development.
Rare was a British game developer founded in 1985 by brothers Tim and Chris Stamper. Before the acquisition, it was closely associated with Nintendo and created major Nintendo 64 titles including GoldenEye 007, Banjo-Kazooie, and Perfect Dark. Microsoft announced its purchase of Rare in September 2002.
The acquisition gave Xbox an established first-party studio with experience in console action, adventure, platform, and shooter games. Rare continued developing for Xbox, producing titles such as Kameo: Elements of Power, Perfect Dark Zero, Viva Piñata, and the Xbox 360 launch game Kameo.
Rare is often confused with Bungie because both studios were central to Xbox history, but Microsoft did not acquire Bungie in the same way. Bungie developed Halo and later became independent again. Rare’s later Xbox legacy includes Sea of Thieves, which launched in 2018 and became one of the studio’s best-known modern releases.