Former Annapurna Chiefs Take Helm at Private Division

Summary

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

Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its workforce significantly reduced. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future uncertain, resulting in widespread layoffs.

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the undisclosed buyer. Haveli and the former Annapurna staff reportedly formed a partnership 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 Transition Reflects Industry Instability

The mass exodus from Annapurna Interactive in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained roughly twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The new entity's name, focus, and plans for future IP remain undisclosed.

This merger mirrors the wider gaming industry's turbulent landscape, marked by substantial layoffs and studio closures in recent years. The integration of two groups of displaced game developers reflects the industry's increasingly ruthless approach, driven by investor apprehension towards high-risk, large-scale projects.