[4] On November 8, 2001, video game publisher THQ announced that it had agreed to acquire the studio in exchange for 1 million shares of common stock.

Because the team was "a minority" in the studio's multi-team setup, development on the game was able to continue despite the staff reduction.

[17] As Nordic Games planned to start developing new titles in that franchise, the company opted to resurrect Rainbow Studios under the former name and in its former location.

[17] The move was announced in December that year, at which point the new Rainbow Studios had hired many people previously employed by the former Rainbow Studios, including Ken George, Dave Dwire, Mike Mamula, Brad Bowling, Scott Hofmann, Justin Walsh, David Knudsen, and Lenore Gilbert.

[21] In September 2023, Rainbow Studios suffered an unknown number of layoffs as part of the Embracer Group's effort to reduce costs.