Rainbow Studios
American video-game developer known for off-road racing titles including Motocross Madness and the MX vs. ATV series.
Last updated August 22, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Rainbow Studios is an American video-game development studio based in Phoenix, Arizona. It is principally associated with off-road racing and action-sports games, especially the Motocross Madness and MX vs. ATV franchises. The company began in 1986 as Rainbow Multimedia Group, founded by Earl Jarred. In 1992, after shifting its emphasis toward video-game development, it adopted the Rainbow Studios name. The studio became prominent through games built around motocross, all-terrain vehicles, and other forms of off-road competition. Its work helped establish a recognizable development identity centered on vehicle handling, outdoor environments, jumps, stunts, and accessible arcade-style racing. The studio's best-known work includes Motocross Madness and later entries in the MX vs. ATV line, a franchise combining motocross and ATV racing with broader off-road driving. Rainbow Studios was acquired by THQ in a transaction announced in November 2001 and completed in January 2002. Under THQ, the Phoenix developer continued operating as part of a larger publisher-owned studio structure. Several former employees later founded other development companies, including 2XL Games in 2005 and TimeFly Studios in 2008. These departures reflected the movement of experienced developers through the specialist racing-game sector, although Rainbow Studios continued to develop games during the period. The studio experienced substantial organizational pressure during THQ's restructuring period. It reduced staff in 2008 and 2009, and in February 2010 it was renamed THQ Digital Studios Phoenix as THQ sought to reorganize its internal development network and place greater emphasis on digitally distributed games. THQ announced the closure of THQ Digital Studios Phoenix in August 2011, eliminating 48 Phoenix jobs while planning to retain a quality-assurance presence at the location. After THQ entered bankruptcy, Nordic Games acquired a range of THQ assets in 2013, including the MX vs. ATV franchise. Nordic Games subsequently revived the Phoenix studio under the Rainbow Studios name to work on new titles associated with the acquired property. The re-established studio recruited a number of former Rainbow personnel, including Ken George, Dave Dwire, Mike Mamula, Brad Bowling, Scott Hofmann, Justin Walsh, David Knudsen, and Lenore Gilbert. By June 2019, the studio reportedly had 41 employees, and Gilbert was serving as chief executive officer by October of that year. Rainbow Studios was historically connected to Nordic Games and, after the publisher adopted the THQ Nordic name, to the wider THQ Nordic and Embracer corporate structure. In September 2023, the studio was affected by layoffs connected with Embracer Group's cost-reduction program. At a later point, Rainbow Studios became independent and employee-owned. Its present identity therefore combines continuity with its Phoenix development heritage and a more autonomous ownership model. The studio remains best understood as a specialist game developer rather than a mass-market publishing company, with its brand equity concentrated in off-road racing and related vehicle-focused game development.
History
Rainbow Studios traces its origins to Rainbow Multimedia Group, established in 1986 by Earl Jarred. The company initially operated under that name and later redirected its activities toward video-game development. In 1992, it adopted the Rainbow Studios name, marking the beginning of the identity under which it became associated with racing and off-road games. The studio developed a reputation for vehicle-centered games, particularly motocross and off-road racing experiences. Its best-known early property was Motocross Madness, which helped make the studio recognizable in the racing genre. Rainbow Studios later became closely identified with MX vs. ATV, a franchise built around competition between motocross motorcycles, all-terrain vehicles, and other off-road machines. The studio's work generally emphasized jumps, varied terrain, stunts, and accessible racing systems rather than conventional circuit racing alone. THQ announced an agreement to acquire Rainbow Studios on November 8, 2001. The proposed consideration consisted of THQ common stock. The companies signed a merger agreement on December 21, 2001, and THQ announced completion of the transaction on January 3, 2002. The acquisition placed the Phoenix developer inside THQ's group of owned studios and gave its racing properties the backing of a major publisher. The THQ period also saw staff movement and organizational change. In 2005, founder Earl Jarred left the studio with vice chairman Jeff Padden and employees Rick Baltman and Robb Rinard to establish 2XL Games. In April 2008, former Rainbow personnel Brad Ruminer, Dennis Booth, and Glenn O'Bannon announced the formation of TimeFly Studios. These departures linked Rainbow Studios to a broader network of specialist developers with experience in racing and vehicle games. Rainbow itself faced layoffs during THQ's restructuring. In April 2008, a 30-person team working on an unannounced title was dismissed, although the studio's other teams allowed development activity to continue. Additional reductions followed in November 2008 and February 2009. On February 3, 2010, THQ renamed Rainbow Studios THQ Digital Studios Phoenix. The change was part of a wider attempt to reorganize internal development and increase the role of digitally distributed games. The related restructuring affected both the Phoenix studio and THQ Digital Studios Warrington, formerly Juice Games. On August 9, 2011, THQ announced that THQ Digital Studios Phoenix would close. The closure eliminated 48 jobs at the Phoenix location, although THQ planned to retain a quality-assurance department there. The closure ended the studio's continuous operation under its Rainbow identity and occurred during a difficult period for THQ. THQ later filed for bankruptcy. In 2013, Nordic Games purchased a selection of THQ assets, including the MX vs. ATV franchise. Because Nordic Games intended to develop further titles in the franchise, it revived the Phoenix operation under the Rainbow Studios name. The re-established studio recruited numerous former employees, including Ken George, Dave Dwire, Mike Mamula, Brad Bowling, Scott Hofmann, Justin Walsh, David Knudsen, and Lenore Gilbert. This reconstruction gave the revived company continuity with the earlier studio while placing it under a new publisher relationship. Nordic Games subsequently became known as THQ Nordic, and the wider corporate structure later became associated with Embracer Group. By June 2019, Rainbow Studios had 41 employees. By October of that year, Lenore Gilbert was identified as the studio's chief executive officer. In September 2023, Rainbow Studios was among the operations affected by layoffs linked to Embracer's cost-cutting program. The timing and details of its later separation from the corporate group are not fully documented in the supplied reference material, but the studio is described as having subsequently become independent and employee-owned. Its historical significance rests on its long-running Phoenix development base, its role in off-road racing games, and the continued association of its name with Motocross Madness and MX vs. ATV.
- 2023
Layoffs occur during Embracer restructuring
[1]Rainbow Studios experiences layoffs associated with Embracer Group's cost-reduction program.
- 2019
Studio workforce and leadership documented
[1]Rainbow Studios is reported to have 41 employees by June, while Lenore Gilbert is identified as chief executive officer by October.
- 2013
Rainbow Studios is re-established
[1]Nordic Games revives the Phoenix studio after acquiring THQ assets, including the MX vs. ATV franchise.
- 2011
Phoenix studio closes
[1]THQ closes THQ Digital Studios Phoenix and eliminates 48 studio jobs, while retaining a planned quality-assurance operation.
- 2010
Renamed THQ Digital Studios Phoenix
[1]THQ changes the studio's name during an internal restructuring focused partly on digitally distributed games.
- 2008
TimeFly Studios is formed by former employees
[1]Brad Ruminer, Dennis Booth, and Glenn O'Bannon announce the creation of TimeFly Studios.
- 2005
Former Rainbow personnel establish 2XL Games
[1]Earl Jarred, Jeff Padden, Rick Baltman, and Robb Rinard leave Rainbow Studios and form 2XL Games.
- 2002
THQ acquisition is completed
[1]THQ completes its acquisition of Rainbow Studios in January.
- 2001
THQ announces acquisition agreement
[1]THQ announces an agreement to acquire Rainbow Studios using THQ common stock as consideration.
- 1992
The company adopts the Rainbow Studios name
[1]After shifting its focus toward video-game development, Rainbow Multimedia Group is rebranded as Rainbow Studios.
Products and positioning
A specialist video-game developer focused on off-road racing, motocross, ATV competition, vehicle handling, and outdoor action-sports experiences.
Off-road racing video game
Motocross Madness
Motocross Madness is an off-road racing property associated with Rainbow Studios and its early reputation. The series centers on motocross competition, dirt environments, jumps, and stunt-oriented riding. It helped establish the studio as a developer of energetic, accessible racing games rather than conventional road-racing simulations.
Off-road racing video-game franchise
MX vs. ATV
MX vs. ATV is Rainbow Studios' best-known franchise. It combines motocross motorcycles and all-terrain vehicles in off-road competitions built around varied terrain, jumps, vehicle control, and arcade-oriented racing. The property became part of the THQ asset portfolio acquired by Nordic Games in 2013, a transaction that helped motivate the revival of Rainbow Studios in Phoenix.
Brand decisions
2013
Re-establish Rainbow Studios in PhoenixStrategyBackground
Nordic Games acquired THQ assets, including MX vs. ATV, and planned new development connected with the franchise.
Action taken
Nordic Games revived the former Phoenix studio under the Rainbow Studios name and recruited several former employees.
Aftermath
The Rainbow identity returned to active game development and became associated with the post-THQ continuation of the off-road racing business.
2010
Rebrand as THQ Digital Studios PhoenixStrategyBackground
THQ was reorganizing its development portfolio and emphasizing digitally distributed games.
Action taken
THQ renamed Rainbow Studios and combined the change with broader staffing and organizational restructuring.
Aftermath
The Phoenix studio operated under the THQ Digital Studios name until THQ announced its closure in 2011.
2001
Accept acquisition by THQM&ABackground
Rainbow Studios operated as an independent developer before THQ sought to bring it into the publisher's owned-studio network.
Action taken
The companies agreed to a stock-based acquisition, announced in November 2001 and completed in January 2002.
Aftermath
Rainbow Studios continued as a THQ-owned development studio until the later restructuring and closure of its Phoenix operation.
Recent events
- 2023
Rainbow Studios affected by Embracer cost reductions[1]
Other
The studio experienced layoffs as part of Embracer Group's broader cost-reduction and restructuring program.
- 2013
Rainbow Studios revived after Nordic Games acquires THQ assets[1]
M&A · Leadership change
Following Nordic Games' acquisition of THQ assets including the MX vs. ATV franchise, the Phoenix studio was re-established under the Rainbow Studios name.
- 2011
THQ announces closure of THQ Digital Studios Phoenix[1]
Other
THQ announced the closure of the Phoenix development studio, resulting in the elimination of 48 jobs while a quality-assurance function was expected to remain on site.
- 2010
Rainbow Studios becomes THQ Digital Studios Phoenix[1]
Other
THQ renamed Rainbow Studios as part of a restructuring intended to support the publisher's digital-distribution strategy. The restructuring affected the Phoenix and Warrington studios collectively.
- 2008
Rainbow Studios team affected by layoffs[1]
Leadership change · Other
A 30-person team working on an unannounced game was laid off during a period of restructuring, while development at the studio continued through its other teams.
- 2002
THQ completes Rainbow Studios acquisition[1]
M&A
THQ completed the acquisition of Rainbow Studios after the companies signed a merger agreement in December 2001.
- 2001
THQ agrees to acquire Rainbow Studios[1]
M&A
THQ announced an agreement to acquire Rainbow Studios in exchange for shares of THQ common stock.
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/rainbow-studios · Editorial policy · How profiles are compiled