Private Division Staffed by Ex-Annapurna Staff

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 its parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.

Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its operations significantly altered.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous, and the studio's future, along with its existing projects, was uncertain. The sale resulted in widespread layoffs.

According to Jason Schreier's report, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Haveli and the former Annapurna employees reportedly reached an agreement to manage and distribute Private Division's remaining titles, including the anticipated March 2025 release of Tales of the Shire, the ongoing Kerbal Space Program, and an unannounced project from Game Freak, the Pokémon developer.

Private Division's Restructuring Reflects Industry Trends

The majority of Annapurna Interactive's staff left after contract disputes with CEO Megan Ellison in September 2024. While Haveli's acquisition of Private Division retained approximately twenty employees, some are expected to be let go to accommodate the incoming Annapurna team. The Annapurna team's future plans regarding new intellectual property or projects remain undisclosed, as does the name and overall direction of the newly formed entity.

The merger of Annapurna and Private Division highlights the broader gaming industry's recent tumultuous period, marked by widespread layoffs and studio closures. This acquisition, where one group of laid-off employees takes over from another, reflects the industry's aggressive approach amidst investor apprehension towards high-risk, large-scale projects.