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The economy's cold shadow has begun to loom over Rare, with the Banjo Kazooie developer telling GI.biz that it is undergoing restructuring that could leave a "small number" of employees cleaning out their desks. The effort is part of a broader move by studio-owner Microsoft to tighten its financial belt, an effort that has already left a number of key employees on the unemployment line so far.

According to studio manager Mark Betteridge, this retooling is needed in order to "speed development and better manage the scale required to create high quality games." Betteridge further notes that Rare has four separate unspecified titles "recently underway," though we wonder how many of these projects will be able to make it through the studio's newly-constricted pipeline.