Ex-Annapurna Interactive Staff Take Over Private Division

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The acquisition follows a significant staff exodus from Annapurna Interactive in September 2024 after negotiations with CEO Megan Ellison failed.

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced a major restructuring in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future uncertain at the time. The sale resulted in widespread layoffs.

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, purchased Private Division. Haveli and the former Annapurna staff have reportedly partnered to manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025), Kerbal Space Program, and an unannounced title from Game Freak.

Private Division's Transition Reflects Industry Instability

The mass departure of Annapurna Interactive staff followed a breakdown in negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The new entity's name, future projects, and overall direction remain undisclosed.

This merger mirrors broader trends in the gaming industry, characterized by extensive layoffs and studio closures in recent years. The situation underscores a challenging climate for game developers, driven by investor hesitancy towards high-risk, large-scale projects. The absorption of one group of laid-off employees by another highlights the industry's current competitive landscape.