Ex-Annapurna Team Launches Private Division

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The 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 games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its workforce dispersed.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous, and the sale resulted in widespread layoffs. According to journalist Jason Schreier, the undisclosed buyer is reportedly Austin-based Haveli Investments, a private equity firm specializing in technology and gaming. Haveli and the former Annapurna staff have allegedly partnered to manage Private Division's remaining titles, including the anticipated Tales of the Shire (March 2025 release), the established Kerbal Space Program, and an unannounced project from Game Freak.

Private Division's Transition Reflects Industry Instability

The majority of Annapurna Interactive's staff left the company in September 2024 due to failed negotiations with CEO Megan Ellison. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are expected to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains uncertain.

This merger exemplifies the current state of the gaming industry, marked by widespread layoffs and studio closures in recent years. The scenario of one group of laid-off game developers taking over another's operation underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.