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. The acquisition follows a mass exodus from Annapurna Interactive in September 2024, after negotiations with CEO Megan Ellison failed.

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 the studio's future uncertain. The sale resulted in widespread layoffs.

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, purchased Private Division. Haveli reportedly partnered with the former Annapurna staff to manage Private Division's remaining projects, including Tales of the Shire (slated for March 2025), Kerbal Space Program, and an unannounced Game Freak title.

Private Division's Transition Reflects Industry Trends

The September 2024 departure of most Annapurna Interactive employees followed a breakdown in negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's acquisition saved roughly twenty Private Division employees, further layoffs are expected to integrate the Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains undisclosed.

This merger highlights the volatile games industry landscape. Recent years have witnessed massive layoffs and studio closures, reflecting a shift in investor sentiment away from high-risk, large-scale projects. The absorption of one group of laid-off employees by another underscores the industry's current competitive climate.