Former Annapurna Interactive Team Launches Private Division

Summary

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

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced significant upheaval in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, resulting in widespread layoffs. The buyer remained unannounced until recently.

According to Jason Schreier's reporting, Haveli Investments, an Austin-based private equity firm, purchased Private Division. Haveli reportedly partnered with the former Annapurna staff to manage Private Division's existing titles. This includes Tales of the Shire (slated for March 2025), the long-running Kerbal Space Program, and an unannounced Game Freak project.

Private Division's Transition Reflects Industry Instability

The majority of Annapurna Interactive's staff left after failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are anticipated to integrate the Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains unclear. The studio's name and overall goals haven't been publicly revealed.

This merger mirrors the broader gaming industry's recent instability, characterized by widespread layoffs and studio closures. The situation highlights the industry's current climate, where investors are increasingly hesitant towards large-scale, high-risk projects. The integration of two groups of laid-off game developers reflects this challenging environment.