Summary
Former Annapurna Interactive employees have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. A significant portion of Annapurna Interactive's workforce departed from its parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.
Following a tumultuous period in 2024, Annapurna Interactive, known for publishing acclaimed titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its staff transition to Private Division.
Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous initially, and the sale resulted in widespread layoffs.
According to Jason Schreier's reporting, Haveli Investments, an Austin-based private equity firm, is the alleged purchaser of Private Division. Haveli and the former Annapurna employees have reportedly forged an agreement to manage and distribute Private Division's portfolio, 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 departure of most Annapurna Interactive employees in September 2024 stemmed from unsuccessful negotiations with CEO Megan Ellison. 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 unconfirmed. The studio's name and overarching goals are yet to be revealed.
The merger of Annapurna and Private Division's operations underscores the prevailing instability in the gaming industry. Recent years have witnessed substantial job losses and studio closures. This acquisition, where one group of laid-off gaming professionals absorbs another, encapsulates the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.
