Summary
Former employees of Annapurna Interactive have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. The majority of Annapurna Interactive's workforce departed their parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.
Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw a major staff exodus.
Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer remained anonymous, and the studio's future and existing projects were uncertain. The sale resulted in widespread layoffs.
According to a report by Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged purchaser of Private Division. Haveli and the former Annapurna staff have reportedly formed a partnership to manage Private Division's remaining game portfolio, including Tales of the Shire (slated for a March 2025 release), the Kerbal Space Program, and an unannounced title from Game Freak.
Private Division's Restructuring Highlights Industry Instability
The mass exodus from Annapurna Interactive in September 2024 stemmed from failed 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 plans of the combined entity, including potential new IP or projects, remain undisclosed, as does the studio's new name and overall mission.
The merger of Annapurna and Private Division reflects the current turbulent state of the gaming industry. Recent years have witnessed widespread layoffs and studio closures. The acquisition, where one group of laid-off game developers takes over another's operations, underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.
