Ex-Annapurna Interactive Staff Take Over Private Division

Executive Summary

Former Annapurna Interactive employees have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. This acquisition follows the departure of most Annapurna Interactive staff in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison failed.

Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its staff depart. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future remaining undisclosed initially. The sale resulted in widespread layoffs within Private Division.

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Haveli and the former Annapurna employees have reportedly reached an agreement to manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced project from Game Freak.

Private Division's Transition Reflects Industry Instability

The mass exodus from Annapurna Interactive 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 integrate the Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains uncertain, as does the studio's name and overall mission.

This merger of Annapurna and Private Division exemplifies the current volatile state of the gaming industry. Recent years have witnessed substantial job losses and studio closures. The integration of two groups of displaced game developers underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.