A team of four ex-Rare staffers have formed a new development studio, while also announcing an upcoming Microsoft Studios-published Xbox Live Arcade title.

Starfire Studios consists of designer Chris Tilston, programmer Mark Edmonds, and artists Ross Bury and Phil Dunne, all of whom had previously worked at Viva Pinata developer Rare for over 10 years.

The studio's first game, entitled Fusion: Genesis, is set to be released later this year, and revolves around an "always connected" dynamic space environment.

Players pilot a spaceship with twin-stick controls and MMORPG elements, and hundreds of single-player and co-op missions available. Eight-player PVP gameplay is also on the cards.

Meanwhile, a version for Windows Phone 7, called Fusion: Sentient, is also in development by a different unannounced studio, and the two games will be able to link up and trade specific items.

Plenty of details about the game, including the factions that vie for control of the galaxy and the types of missions players will be undertaking, are available on the official Fusion: Genesis website.