UK developer Rare has released a statement confirming that the Twycross-based studio is set to undergo restructuring, with the studio's output now under review and the teams within embarking on the possibility of redundancies.

“As the entire industry struggles to address the increasing scale and cost of development, we too have felt a need to restructure our current approach so we can speed development and better manage the scale required to create high quality games,” stated Rare's studio manager Mark Betteridge.

Rare confirmed that such restructuring could lead to future redundancies, stating that “the company is reviewing the current composition of its development teams and there is the possibility that a small number of current positions could be lost as a result of these changes.”

No such redundancies have been announced as yet.

The UK developer, which was purchased in 2002 by Microsoft for around $377 million, stated that it will also “realign” its development output. These measures together come as part of Microsoft's previously announced measures to save itself $1.5 billion in operating expenses.

It will remain an internal studio owned by Microsoft, and will continue its output on the Xbox 360, though the team will now dedicate some of its time to enhancing the Xbox Live experience through products and services. The group very recently designed NXE avatars.

This does not mean, however, that the developer's work on key franchises is over. Rare states that it will continue its pursuit of “delivering AAA gaming experiences that excite both our current and future customers.”