Ex-Annapurna Interactive Staff Take Over Private Division

Summary

Former Annapurna Interactive employees have acquired Private Division, a former Take-Two Interactive subsidiary. The majority of Annapurna Interactive's staff departed their parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.

Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw a mass exodus of its employees.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous, and the studio's future, along with its existing projects, was uncertain. The sale resulted in widespread layoffs.

According to Jason Schreier's report, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Haveli and the former Annapurna staff have reportedly partnered to manage Private Division's remaining games, including the anticipated Tales of the Shire (March 2025 release), the ongoing Kerbal Space Program, and an unannounced project from Game Freak.

Private Division's Transformation Reflects Industry Trends

The majority of Annapurna Interactive's workforce left after contract disputes with CEO Megan Ellison in September 2024. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains undisclosed.

This merger exemplifies the current volatile state of the gaming industry. Recent years have witnessed widespread layoffs and studio closures. The integration of two groups of displaced game developers underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.