Summary
- Former Annapurna Interactive staff have taken over the operations of Private Division, a studio previously owned by Take-Two Interactive.
- The majority of Annapurna Interactive's staff left its parent company in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison fell apart.
Ex-staffers from troubled publisher Annapurna Interactive have entered into an agreement to take over the operations of Private Division, a studio formerly owned by Take-Two Interactive. Before an abrupt shakeup in 2024, Annapurna Interactive was renowned for publishing critically acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.
Private Division, established in 2017, was sold by its parent company, Take-Two Interactive, in November 2024. The buyer remained undisclosed at the time, along with the fate of the studio and its existing titles. The sale led to the layoff of the majority of its staff amidst broader studio closures and headcount reductions by Take-Two.
According to a report by Jason Schreier, Private Division's buyer is allegedly Austin-based private equity firm Haveli Investments, which invests broadly in the technology and gaming sectors. Haveli and the self-exiled Annapurna staff have reportedly struck a deal to absorb and distribute games still under Private Division's banner. These include the anticipated March 2025 release Tales of the Shire, the long-running Kerbal Space Program, and an unannounced project from Game Freak, the developer and co-owner of Pokemon.
Private Division Shakeup Continues Precarious Industry Trend
The majority of Annapurna Interactive's staff left its parent company in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison fell apart. While Haveli's acquisition of Private Division retained around twenty remaining employees, some of these legacy staff will reportedly be laid off to make way for the incoming Annapurna team. It remains unclear whether the Annapurna team plans to adopt any new IP or take on new projects. The name and broader mission of the newly formed studio have not yet been identified.
The effective consolidation of Annapurna and Private Division reflects the broader games industry's shift in expectations and practices over the past several years, which saw tens of thousands of layoffs and numerous studio closures. One group of gaming employees welcoming another group of discarded gaming employees is a poignant evolution of the industry's take-no-prisoners approach, as investors increasingly shy away from high-profile, large investment projects and the risks they entail.
