Microsoft-owned developer Rare has suffered layoffs after the release of Xbox One exclusive Kinect Sports Rivals failed to set tills alight, Eurogamer can reveal.

Multiple, separate sources indicated to Eurogamer that the studio, which has focused on the Kinect Sports series in recent years, had recently suffered layoffs.

A Microsoft spokesperson issued Eurogamer the following statement this afternoon:

"At Xbox, our goal is to constantly create new fun, social and interactive entertainment experiences. As part of Rare's commitment to this goal, we have made a decision to change our development process and methodology at Rare to best support our future projects, this has led to us reviewing the skills and the makeup of our development teams in our business.

"Rare continues to invest in our people and future projects."

While Microsoft did not confirm how many people had been let go, Eurogamer understands the number is around 16, a figure one source said was made up of some software staff, but mainly design and project managers. Kinect Sports Rivals was a 150 person project.

Microsoft also declined to explain why the changes were made, but the sales performance of the recently-released Kinect Sports Rivals may have played a part. It had been intended as an Xbox One launch title, but was delayed to April. When it did release, it entered the UK all-formats chart in 14th place. One source indicated to Eurogamer Rare suffered a significant loss on the project.

http://www.eurogamer.net/articles/2014-05-19-layoffs-hit-rare-following-kinect-sports-rivals-flop

It's a shame- Kinect Sports Rivals was probably a great game for what it was, but the market for these games isn't there on consoles anymore.

Between the layoffs and Kinect Sports Rivals flopping, it's bee a bad time for Rare.

People might expect them to go back to making N64-style classics now, but honestly, what have they done since 2008's Nuts and Bolts? The last universally acclaimed game from them was 2001's Conker game, three generations ago. Could they be capable of making a great platformer, especially after spending years focusing on Kinect minigames and these layoffs?

"Sources close to the Microsoft-owned studio indicated that just under 20 employees are set to depart, including veteran programmer Chris Sutherland, who has worked on Rare games for more than 20-years.

During his distinguished career Sutherland acted as lead programmer on Battletoads, as well as all three Donkey Kong Country and Banjo-Kazooie games. He's also known as the 'voice' of the latter's bear and bird protagonists.

CVG sources indicate that designer Gavin Price will also leave Rare, after a 15-year career which saw him work on Viva Pinata, Grabbed by the Ghoulies, Banjo-Kazooie: Nuts & Bolts and a number of unannounced, cancelled projects."

None of the "old Rare" are left, so what are the fans then fans of?

Sources close to the Microsoft-owned studio indicated that just under 20 employees are set to depart, including veteran programmer Chris Sutherland, who has worked on Rare games for more than 20-years.

During his distinguished career Sutherland acted as lead programmer on Battletoads, as well as all three Donkey Kong Country and Banjo-Kazooie games. He's also known as the 'voice' of the latter's bear and bird protagonists.

CVG sources indicate that designer Gavin Price will also leave Rare, after a 15-year career which saw him work on Viva Pinata, Grabbed by the Ghoulies, Banjo-Kazooie: Nuts & Bolts and a number of unannounced, cancelled projects.

Sutherland and Price going.

The old Rare is now definitely gone. Can we just ignore them now?

I don't think Microsoft knows what to do with Rare anymore. Most of their games after being bought out were flops and disappointments. Later on they found success with Kinect, but now that ship has sailed and they're back to square one again. So what's next? Get them working on an old Rare IP? If that was the case then why is the studio getting hit with layoffs, shouldn't they expand if they were going to work on more traditional games? I honestly wouldn't be surprised if we see Rare closed down soon.

I'd buy an xbox one the second Microsoft announces a traditional BK game.

It is 16 people, this is not news. Redundancies after a game has been shipped happen all the time.

Saw this coming a mile off.

The couple of threads i saw on here who were expecting Kinect Sports Rivals to do upwards of 1 mill first month were just ridiculous.