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.
Annapurna Interactive, known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced significant internal upheaval in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future remaining undisclosed initially. The sale resulted in widespread layoffs.
According to Jason Schreier's reporting, Haveli Investments, an Austin-based private equity firm, is the alleged buyer of Private Division. Haveli and the former Annapurna staff have reportedly formed a partnership to manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025), the Kerbal Space Program, and an unannounced title from Game Freak.
Private Division's Restructuring Reflects Industry Instability
The mass exodus of Annapurna Interactive employees in September 2024 followed a breakdown in talks 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 direction of the combined entity, including potential new IP or projects, remains unclear, as does the studio's official name and overall mission.
This merger of Annapurna and Private Division exemplifies the current volatile state of the gaming industry. Widespread layoffs and studio closures have become commonplace in recent years. The acquisition represents a unique situation where one group of displaced gaming professionals takes over another, mirroring the ruthless business practices prevalent within the industry as investors retreat from high-risk, large-scale projects.
