Private Division Staffed by Former Annapurna Interactive Team

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. Following a breakdown in negotiations with Annapurna Pictures CEO Megan Ellison, most of Annapurna Interactive's staff departed in September 2024.

After a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its staff transition to a new venture.

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 journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged buyer. Haveli and the former Annapurna employees reportedly agreed to manage Private Division's remaining titles, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced Game Freak project.

Private Division's Transition Reflects Industry Trends

The majority of Annapurna Interactive's staff left after contract disputes with CEO Megan Ellison. While Haveli's purchase retained about twenty Private Division employees, some will reportedly be let go to accommodate the incoming Annapurna team. The future plans of the combined entity, including potential new IP or projects, remain unclear, as does the studio's new name and overall direction.

This merger of Annapurna and Private Division highlights the current gaming industry climate. Recent years have witnessed massive layoffs and studio closures. The situation reflects a ruthless industry approach, fueled by investor hesitancy towards high-risk, large-scale projects. The absorption of one group of laid-off employees by another underscores this trend.