Ex-Annapurna Team Launches New Gaming Venture

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously under Take-Two Interactive's ownership. This follows the departure of most Annapurna Interactive staff in September 2024 after failed negotiations with Annapurna Pictures CEO Megan Ellison.

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced a significant upheaval in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and future of the studio initially unknown. The sale resulted in widespread layoffs at Private Division.

According to Jason Schreier's report, Haveli Investments, an Austin-based private equity firm, is the undisclosed buyer. Haveli reportedly partnered with the former Annapurna staff to manage Private Division's remaining titles, including the anticipated Tales of the Shire (March 2025 release), the established Kerbal Space Program, and an unannounced Game Freak project.

Private Division's Transition Reflects Industry Instability

The mass exodus from Annapurna Interactive in September 2024 stemmed from broken negotiations with CEO Megan Ellison. While Haveli's purchase of Private Division retained roughly twenty employees, some are expected to be let go to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains uncertain, as does its official name and overall mission.

This merger of Annapurna and Private Division highlights the volatile state of the gaming industry. Recent years have witnessed substantial layoffs and studio closures. The absorption of one group of laid-off game developers by another reflects the industry's increasingly aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.