Ex-Annapurna Interactive Staff Join Private Division

Summary

• Former Annapurna Interactive staff have taken over the operations of Private Division, a studio previously owned by Take-Two Interactive.
• The majority of Annapurna Interactive's staff left its parent company in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison fell apart.

Ex-staffers from the troubled publisher Annapurna Interactive have entered into an agreement to take over the operations of Private Division, a studio formerly owned by Take-Two Interactive. Before an abrupt shakeup in 2024, Annapurna Interactive was celebrated for publishing critically acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.

Private Division, established in 2017, was sold by its parent company Take-Two Interactive in November 2024. The buyer remained undisclosed initially, leaving the fate of the studio and its existing titles uncertain. This sale led to the majority of Private Division's staff being laid off, amidst broader studio closures and workforce reductions by Take-Two.

According to a report by Jason Schreier, the buyer of Private Division is allegedly Austin-based private equity firm Haveli Investments, which has a broad investment focus in the technology and gaming sectors. Haveli and the former Annapurna staff have reportedly struck a deal to manage and distribute games still under Private Division's banner. These include the anticipated March 2025 release Tales of the Shire, the long-running Kerbal Space Program, and an unannounced project from Game Freak, the developer and co-owner of Pokémon.

Private Division Shakeup Continues Precarious Industry Trend

The majority of Annapurna Interactive's staff left its parent company in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison fell apart. While Haveli's acquisition of Private Division retained around twenty employees, some of these legacy staff are now reportedly set to be laid off to accommodate the incoming Annapurna team. It remains unclear whether the Annapurna team plans to adopt new IP or initiate new projects. The name and broader mission of the newly formed studio have yet to be disclosed.

The effective consolidation of Annapurna and Private Division mirrors the broader trends in the gaming industry, which has seen tens of thousands of layoffs and numerous studio closures over the past few years. This move, where one group of displaced gaming employees welcomes another, underscores the industry's harsh, no-compromise approach. Investors are increasingly shying away from high-profile, large-scale projects and the risks they entail.