Ex-Annapurna 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 renowned 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, as did the future of the studio and its existing titles. The sale led to significant layoffs among Private Division's staff amidst broader studio closures and headcount reductions by Take-Two.

According to a report by Jason Schreier, the buyer of Private Division is allegedly the Austin-based private equity firm Haveli Investments, which focuses on investments in the technology and gaming sectors. Haveli and the former Annapurna staff have reportedly agreed to absorb and distribute games still under Private Division's banner. These include the anticipated March 2025 release Tales of the Shire, the ongoing Kerbal Space Program, and an unannounced project from Game Freak, the developer and co-owner of Pokemon.

Private Division Shakeup Continues Precarious Industry Trend

The majority of Annapurna Interactive's staff departed from their parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison. Haveli's acquisition of Private Division included around twenty remaining employees, some of whom are reportedly facing layoffs to accommodate the incoming Annapurna team. It remains uncertain whether the Annapurna team plans to develop new IP or undertake new projects. The name and broader mission of the newly formed studio are yet to be disclosed.

The effective merger of Annapurna and Private Division underscores the broader shifts within the games industry over recent years, marked by tens of thousands of layoffs and numerous studio closures. The scenario of one group of displaced gaming employees absorbing another reflects the industry's harsh, take-no-prisoners approach, as investors increasingly shy away from high-profile, large-scale projects and their inherent risks.