Former Annapurna Devs Unite for 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.

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 significantly reduced. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future uncertain. The sale resulted in widespread layoffs.

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 staff have reportedly partnered to manage Private Division's remaining projects, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced title from Game Freak.

Private Division's Restructuring Reflects Industry Trends

The mass exodus from Annapurna Interactive in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition saved approximately twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The new entity's name, future direction, and plans for new IP remain undisclosed.

This merger of Annapurna and Private Division's remnants underscores the volatile state of the gaming industry. Recent years have witnessed substantial job losses and studio closures. The acquisition, where one group of laid-off game developers joins another, symbolizes the industry's increasingly ruthless approach as investors retreat from high-risk, large-scale projects.