Summary
A group of 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.
Annapurna Interactive, before its upheaval, published acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future uncertain at the time. The sale resulted in significant layoffs.
According to Jason Schreier, Haveli Investments, an Austin-based private equity firm, is the alleged buyer. Haveli and the former Annapurna employees reportedly agreed 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 Highlights Industry Instability
The mass exodus from Annapurna Interactive in September 2024 followed a breakdown in talks with CEO Megan Ellison. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are expected to accommodate the incoming Annapurna team. The new studio's name, future direction, and plans for new IP remain undisclosed.
The merger of the Annapurna and Private Division teams reflects the volatile gaming industry landscape. Recent years have witnessed widespread layoffs and studio closures. This acquisition, where one group of laid-off employees absorbs another, underscores the industry's aggressive approach amid investor hesitancy towards high-risk, large-scale projects.
