Microsoft are cutting a large number of jobs in their entertainment division (that includes the Xbox business) and some of those may come at British developer Rare. Microsoft are going to review the studio and in looking ahead Rare will focus on three areas:
"1) Expand the Xbox 360 customer base by delivering experiences that allow our customers to interact with our content in new and innovative ways
2) Better support efforts to extend the appeal of Xbox LIVE as a social entertainment network to drive greater adoption across the Xbox 360 customer base
3) Continue delivering AAA gaming experiences that excite both our current and future customers"
At this point it is unclear how this will change Rare, as this sounds fairly close to what Rare are doing already. Although it is hard to see how the team that has worked on Nintendo DS titles fits into it.