Ex-Annapurna Interactive Staff Take Over Private Division

Summary

Former Annapurna Interactive employees 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 from its parent company in September 2024 following unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison.

Prior to its 2024 restructuring, Annapurna Interactive successfully published several critically acclaimed games, including 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, along with the studio's future and its existing projects. The sale resulted in significant layoffs for Private Division's staff amidst broader industry downsizing by Take-Two.

According to a report by Jason Schreier, the acquiring entity is allegedly Haveli Investments, an Austin-based private equity firm specializing in technology and gaming. Haveli and the former Annapurna employees reportedly agreed to manage Private Division's remaining titles, including the anticipated March 2025 release of Tales of the Shire, the established Kerbal Space Program, and an unannounced project from Game Freak, the Pokémon developer.

Private Division's Transformation Reflects Industry Trends

The departure of most Annapurna Interactive employees in September 2024 followed failed negotiations with CEO Megan Ellison. While Haveli's acquisition of Private Division retained approximately twenty employees, some are expected to be laid off to accommodate the incoming Annapurna team. The Annapurna team's future plans regarding new IP or projects remain unclear, as does the new studio's name and overall direction.

The merger of Annapurna and Private Division's operations mirrors the broader gaming industry's recent tumultuous period, characterized by widespread layoffs and studio closures. This situation, where one group of displaced game industry workers absorbs another, reflects the industry's aggressive approach as investors retreat from high-risk, large-scale projects.