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 exodus of Annapurna Interactive staff in September 2024 after negotiations with Annapurna Pictures 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 disruption in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and future of the studio initially unknown. The sale resulted in widespread layoffs.

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

Private Division's Uncertain Future Reflects Industry Trends

The departure of most Annapurna Interactive employees in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains unclear. The studio's name and overall strategy are yet to be revealed.

This merger underscores the current state of the gaming industry, characterized by widespread layoffs and studio closures in recent years. The integration of two groups of displaced game developers symbolizes the industry's increasingly aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.