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 titles like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its team largely dispersed. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future remaining uncertain at the time. The sale resulted in widespread layoffs.
According to Jason Schreier, Haveli Investments, an Austin-based private equity firm, is reportedly the buyer of Private Division. Haveli and the former Annapurna staff have allegedly partnered to manage Private Division's remaining projects, including Tales of the Shire (slated for March 2025), the ongoing Kerbal Space Program, and an unannounced title from Game Freak.
Private Division's Transition Reflects Industry Instability
The mass exodus from Annapurna Interactive in September 2024 followed a breakdown in negotiations with CEO Megan Ellison. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The new studio's name, future direction, and plans for new IP remain undisclosed.
This merger of Annapurna and Private Division's remnants exemplifies the current gaming industry climate, marked by significant layoffs and studio closures in recent years. The situation, where one group of laid-off game developers is essentially absorbing another, underscores the industry's aggressive approach as investors retreat from high-risk, large-scale projects.
