Ex-Annapurna Interactive 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 secured an agreement to manage the operations of Private Division, a studio once owned by Take-Two Interactive. Before an unexpected upheaval in 2024, Annapurna Interactive was renowned for publishing 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. At the time of the sale, the buyer's identity and the future of the studio and its ongoing projects remained undisclosed. This transaction led to significant layoffs at Private Division, reflecting broader studio closures and workforce reductions by Take-Two.

According to a report by Jason Schreier, the buyer of Private Division is reportedly Haveli Investments, an Austin-based private equity firm with investments across the technology and gaming industries. Haveli and the former Annapurna staff have reportedly agreed to take over and distribute games still under the Private Division label. These include the anticipated Tales of the Shire, set for release in March 2025, the ongoing Kerbal Space Program, and an unannounced project from Game Freak, the developer and co-owner of Pokémon.

Private Division Shakeup Continues Precarious Industry Trend

The majority of Annapurna Interactive's staff departed from their parent company in September 2024 following unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison. Haveli's acquisition of Private Division retained about twenty employees, but some of these legacy staff members will reportedly be laid off to accommodate the incoming Annapurna team. It remains uncertain whether the Annapurna team will take on new IP or projects. The name and overarching mission of the newly formed studio have yet to be revealed.

The merger of Annapurna and Private Division exemplifies the broader shifts within the gaming industry over recent years, which have seen tens of thousands of layoffs and numerous studio closures. This scenario, where one group of displaced gaming employees steps in to support another, underscores the industry's increasingly competitive and risk-averse environment, as investors shy away from high-profile, high-investment projects.