Ex-Annapurna Interactive Staff Take Over Private Division

Summary

Former Annapurna Interactive employees have acquired the operations of Private Division, a studio previously under Take-Two Interactive's ownership. Following a breakdown in negotiations with Annapurna Pictures CEO Megan Ellison, most of Annapurna Interactive's staff departed in September 2024.

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 major staff exodus. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer remaining undisclosed initially. The sale resulted in widespread layoffs at Private Division.

According to Jason Schreier's reporting, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Haveli and the former Annapurna staff have reportedly reached an agreement to manage Private Division's existing projects, including the anticipated Tales of the Shire (March 2025 release), the ongoing Kerbal Space Program, and an unannounced title from Game Freak, the Pokémon developer.

Private Division's Transformation Reflects Industry Trends

The mass departure of Annapurna Interactive staff in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, some are expected to be let go to accommodate the incoming Annapurna team. The future plans of the combined entity, including potential new IP or projects, remain uncertain, as does the studio's name and overall direction.

The merger of Annapurna and Private Division's operations highlights the current state of the gaming industry, characterized by widespread layoffs and studio closures in recent years. This situation, where one group of laid-off game developers takes over another's operations, reflects the industry's aggressive approach amid investor hesitancy towards large-scale, high-risk projects.