Former Annapurna Team Leads New Endeavor at 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 contract negotiations with Annapurna Pictures CEO Megan Ellison failed.

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its workforce significantly reduced in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, resulting in widespread layoffs. The buyer remained anonymous initially.

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 Restructuring Reflects Industry Trends

The mass exodus from Annapurna Interactive stemmed from failed negotiations with CEO Megan Ellison. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are expected to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains unconfirmed.

This merger exemplifies the current volatile state of the gaming industry. Recent years have witnessed significant layoffs and studio closures. The integration of two groups of displaced gaming professionals highlights the industry's cutthroat nature, driven by investor hesitancy towards high-risk, large-scale projects.