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 a mass exodus from Annapurna Interactive in September 2024 after negotiations with CEO Megan Ellison failed.

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced significant internal upheaval in 2024.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer, initially undisclosed, resulted in widespread layoffs.

According to Jason Schreier, the buyer is reportedly Haveli Investments, an Austin-based private equity firm. Haveli and the former Annapurna staff have reportedly partnered to manage Private Division's remaining titles, including Tales of the Shire (March 2025 release), Kerbal Space Program, and an unannounced Game Freak project.

Private Division's Transition Reflects Industry Trends

The September 2024 departure of most Annapurna Interactive staff followed a breakdown in negotiations with Annapurna Pictures. 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 uncertain.

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