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 in September 2024 following unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison.

Annapurna Interactive, prior to its 2024 restructuring, published acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous initially, and the sale resulted in significant staff layoffs.

According to Jason Schreier's reporting, Haveli Investments, an Austin-based private equity firm, is the alleged buyer. Haveli and the former Annapurna staff have reportedly formed a partnership to manage Private Division's remaining projects, including Tales of the Shire (slated for March 2025), the Kerbal Space Program, and an unannounced title from Game Freak.

Private Division's Transition Reflects Industry Instability

The departure of most Annapurna Interactive employees in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains uncertain. The studio's name and overall mission are yet to be revealed.

This merger of Annapurna and Private Division underscores the current volatile state of the gaming industry. Recent years have witnessed widespread layoffs and studio closures. The scenario of one group of displaced game developers absorbing another reflects the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.