Summary
Former Annapurna Interactive employees have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. This follows a significant exodus of Annapurna Interactive staff in September 2024, stemming from failed negotiations with Annapurna Pictures CEO Megan Ellison.
Annapurna Interactive, prior to its upheaval, was known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.
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, the undisclosed buyer is reportedly Haveli Investments, an Austin-based private equity firm. Haveli and the former Annapurna employees have reportedly partnered to manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced title from Game Freak.
Private Division's Restructuring Reflects Industry Trends
The mass departure of Annapurna Interactive staff followed a breakdown in negotiations 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 uncertain. The studio's name and overall vision are yet to be revealed.
This merger of Annapurna and Private Division highlights the current state of the gaming industry, characterized by substantial layoffs and studio closures in recent years. The scenario of one group of laid-off game developers absorbing another reflects the industry's increasingly aggressive approach, driven by investor hesitancy towards large-scale, high-risk projects.
