Annapurna Exits: Private Division Takes the Helm

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously under Take-Two Interactive's ownership. This follows the departure of most Annapurna Interactive staff in September 2024 after contract negotiations with Annapurna Pictures CEO Megan Ellison failed.

Annapurna Interactive, prior to its upheaval, published acclaimed games 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, and the sale resulted in widespread layoffs.

According to Jason Schreier, 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 existing titles, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced Game Freak project.

Private Division's Restructuring Reflects Industry Instability

The mass exodus from Annapurna Interactive 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, as does its official name and mission statement.

This merger highlights the broader gaming industry's instability, marked by significant layoffs and studio closures in recent years. The absorption of one group of laid-off employees by another reflects the industry's increasingly ruthless approach, driven by investor hesitancy towards high-risk, large-scale projects.