Ex-Annapurna Interactive Staff Take Over Private Division

Summary

Former employees of Annapurna Interactive have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. The majority of Annapurna Interactive's workforce departed its parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.

Annapurna Interactive, known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced significant internal upheaval in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, resulting in widespread layoffs. The buyer remained anonymous initially, leaving the studio's future uncertain.

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged purchaser. Haveli and the former Annapurna employees have reportedly reached an agreement to manage Private Division's remaining titles, including the anticipated Tales of the Shire (March 2025 release), the established Kerbal Space Program, and an unannounced project from Pokémon developers Game Freak.

Private Division's Transformation Reflects Industry Trends

The departure of most Annapurna Interactive employees in September 2024 stemmed from disagreements with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are expected to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IPs or projects, remains undisclosed, as does its official name and overall mission.

This merger of Annapurna and Private Division exemplifies the current gaming industry landscape, characterized by substantial layoffs and studio closures in recent years. The absorption of one group of laid-off employees by another underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.