Annapurna's Gaming Unit Abandons Ship, Casting Doubt on Company's Future

A disagreement with Megan Ellison led to the mass resignation of the entire Annapurna Interactive staff, the video game division of Annapurna Pictures.

Annapurna Interactive Staff Resign After Failed NegotiationsFallout at Annapurna Interactive

Annapurna Interactive, the video game publisher renowned for titles such as Stray and What Remains of Edith Finch, has experienced a surge of resignations. The departure, which reportedly encompasses the entire staff, follows unsuccessful negotiations between the publisher’s employees and its parent company, Annapurna Pictures.

While specifics remain unclear, it appears that the staff, spearheaded by Annapurna Interactive’s former president Nathan Gary, intended to establish the video game publishing division as an autonomous entity. However, these negotiations reportedly reached an impasse, leading to the resignation of over 20 staff members in the wake of Gary’s departure a few days ago.

"All 25 members of the Annapurna Interactive team collectively resigned," Gary said, according to Bloomberg. In the joint statement, the team stated that "this was one of the most difficult decisions we have ever had to make and we did not take this action lightly."

Annapurna Pictures’ Ellison reassured their partners that they remain committed to supporting their ongoing projects and expanding their presence in the interactive entertainment industry. "We continue to look for opportunities to take a more integrated approach to linear and interactive storytelling across film and TV, gaming, and theater," Ellison said to Bloomberg News.

The fallout of this mass exodus is far-reaching. Indie developers who partnered with Annapurna are left in limbo, with "game makers working with Annapurna," according to Bloomberg, scrambling "to find new points of contact and figure out whether the company will continue to honor its agreements."

Remedy Entertainment, whose upcoming game Control 2 was partially funded by Annapurna Interactive, has at least addressed the situation through its communications director Thomas Puha on Twitter (X).

"Many of you are reaching out about the news around Annapurna," Puha started. "Thank you for your care! Remedy’s deal for Control 2, including Alan Wake and Control AV rights, is with Annapurna Pictures, and we are self-publishing Control 2.

In response to the resignations, Annapurna Interactive has appointed Hector Sanchez, a co-founder of the company, as its new Chief Executive Officer. According to Bloomberg’s sources who requested anonymity, Sanchez has reportedly assured partners that the company will honor existing contracts and replace the staff who have left.

Over a week ago, Annapurna announced a restructuring of its gaming operations. Sanchez has been appointed to lead the indie gaming department, following the departure of former Chief Executive Officer Nathan Gary and co-heads of the company’s indie division, Deborah Mars and Nathan Vella.

For more information on Annapurna’s reorganization, check out our article below!