Former Annapurna Team Leads New Take-Two Entity

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 games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its employees form a new entity. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future remaining unclear until now. The sale resulted in widespread layoffs at Private Division.

According to Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Reportedly, Haveli and the former Annapurna staff have partnered to manage Private Division's existing projects, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced title from Game Freak.

Private Division's Transition Reflects Industry Instability

The mass exodus from Annapurna Interactive in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained roughly twenty Private Division employees, some are expected to be let go to accommodate the incoming Annapurna team. The new studio's name, long-term plans, and potential for new IP remain undisclosed.

The merger of these two entities highlights the volatile state of the gaming industry, characterized by widespread layoffs and studio closures in recent years. This unusual partnership, where one group of laid-off employees takes over another's operation, symbolizes the industry's current climate, marked by investor hesitancy towards high-risk, large-scale projects.