Summary

• Former Annapurna Interactive staff have taken over the operations of Private Division, a studio previously owned by Take-Two Interactive.
• The majority of Annapurna Interactive's staff left its parent company in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison fell apart.

Ex-staffers from the troubled publisher Annapurna Interactive have entered into an agreement to take over the operations of Private Division, a studio formerly owned by Take-Two Interactive. Before an abrupt shakeup in 2024, Annapurna Interactive was celebrated for publishing critically acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.

Private Division, established in 2017, was sold by its parent company, Take-Two Interactive, in November 2024. The buyer remained undisclosed at the time, and the fate of the studio and its ongoing projects were uncertain. The sale resulted in the majority of Private Division's staff being laid off, reflecting broader studio closures and workforce reductions by Take-Two.

According to a report by Jason Schreier, Private Division's buyer is allegedly Austin-based private equity firm Haveli Investments, known for its investments in the technology and gaming sectors. Haveli and the former Annapurna staff have reportedly agreed to manage and distribute games still under Private Division's banner. This includes the anticipated March 2025 release Tales of the Shire, the long-standing Kerbal Space Program, and an unannounced project from Game Freak, the developer and co-owner of Pokémon.

Private Division Shakeup Continues Precarious Industry Trend

The majority of Annapurna Interactive's staff departed from their parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison. Haveli's acquisition of Private Division retained around twenty employees, but some of these legacy staff members will reportedly be laid off to accommodate the incoming Annapurna team. It remains uncertain whether the Annapurna team plans to develop new intellectual property or undertake new projects. The name and overarching mission of the newly formed studio have yet to be announced.

The merger of Annapurna and Private Division highlights the broader challenges faced by the gaming industry in recent years, marked by numerous layoffs and studio closures. The transition from one group of gaming employees to another underscores the industry's evolving dynamics, as investors shift away from high-profile, high-risk projects.