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. This follows the departure of most Annapurna Interactive staff in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison failed.

The acquisition of Private Division, sold by Take-Two Interactive in November 2024, marks a significant development. Annapurna Interactive, known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, now effectively controls Private Division's operations and its existing game portfolio. The buyer of Private Division, initially undisclosed, is reportedly Austin-based Haveli Investments, a private equity firm focused on technology and gaming.

This deal reportedly includes the distribution of Private Division's upcoming titles, such as Tales of the Shire (March 2025 release), the ongoing Kerbal Space Program, and an unannounced project from Pokémon developers Game Freak.

Private Division's Restructuring Reflects Industry Trends

The mass exodus from Annapurna Interactive in September 2024, following disagreements with CEO Megan Ellison, paved the way for this acquisition. While Haveli's purchase initially retained about twenty Private Division employees, some are expected to be let go to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains unconfirmed.

This merger mirrors the instability within the gaming industry, characterized by widespread layoffs and studio closures in recent years. The integration of two groups of previously laid-off employees reflects the industry's increasingly aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.