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Several key employees left Rare to form their own companies, such as Free Radical Design, best known for producing the TimeSplitters series, and Playtonic Games, best known for producing Yooka-Laylee. Rare's most recent game, Sea of Thieves, was released in 2018. In 2015, Rare developed Rare Replay, an Xbox One-exclusive compilation containing 30 of its games to celebrate its 30th anniversary.

Fans and former employees have been critical of Microsoft's buyout of Rare, citing a significant drop in game quality and the loss of original talent. In 2007, the Stampers left Rare to pursue other opportunities and, in 2010, the company's focus shifted to the Xbox Live Avatar and Kinect, releasing three Kinect Sports games. Rare has since focused on developing games exclusively for Microsoft's video game consoles, including Grabbed by the Ghoulies, Kameo, Perfect Dark Zero, and Viva Piñata. In 2002, Microsoft acquired Rare, which retained the original brand, logo, and most intellectual properties. Throughout the 1990s and early 2000s, Rare started selling their games under the trademark name 'Rareware' and received international recognition and critical acclaim for games such as the Donkey Kong Country trilogy, Killer Instinct, GoldenEye 007, Banjo-Kazooie, Perfect Dark, and Conker's Bad Fur Day. Rare became a prominent second-party developer for Nintendo, which came to own a large minority stake of the company. During this time the studio created successful games such as Wizards & Warriors, R.C. During its early years, Rare was backed by an unlimited budget from Nintendo, primarily concentrated on Nintendo Entertainment System (NES) games. The company was established in 1985 by brothers Tim and Chris Stamper, who also founded Ultimate Play the Game. Some of their most popular titles include games from the Donkey Kong, Banjo-Kazooie, Conker, Viva Piñata, Grabbed by the Ghoulies, and Battletoads series, as well as games like GoldenEye 007 and Sea of Thieves. Rare are known for their games spanning many genres, which include platforming, first-person shooter, action-adventure, fighting, and racing.

Rare Limited is a British video game developer and a studio of Xbox Game Studios based in Twycross.

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