Summary

• Former employees of Annapurna Interactive have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership.
• Following unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison, a significant portion of Annapurna Interactive's workforce departed in September 2024.

A group of former Annapurna Interactive employees have reached an agreement to assume control of Private Division's operations, a studio previously owned by Take-Two Interactive. Prior to its 2024 restructuring, Annapurna Interactive was known for publishing acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.

Private Division, established in 2017, was sold by Take-Two Interactive in November 2024. The buyer's identity remained confidential, along with the future of the studio and its projects. The sale resulted in widespread layoffs within Private Division, mirroring broader industry trends of studio closures and staff reductions at Take-Two.

According to a report by Jason Schreier, the alleged buyer is Austin-based private equity firm Haveli Investments, which invests in technology and gaming. Haveli and the former Annapurna staff reportedly formed a partnership to manage Private Division's remaining projects, including the anticipated March 2025 release of Tales of the Shire, the ongoing Kerbal Space Program, and an unannounced title from Game Freak, the Pokemon developer.

Private Division's Restructuring Reflects Industry Trends

The majority of Annapurna Interactive's staff left the company in September 2024 after negotiations with CEO Megan Ellison failed. While Haveli's acquisition of Private Division retained approximately twenty employees, some are expected to be laid off to accommodate the incoming Annapurna team. The future plans of the combined entity, including potential new IP or projects, remain unclear. The studio's name and overall direction are yet to be announced.

The merger of Annapurna and Private Division's assets reflects the broader gaming industry's recent upheavals, marked by significant layoffs and studio closures. This situation, where one group of displaced gaming professionals takes over from another, underscores the industry's aggressive approach amidst investor apprehension towards high-risk, large-scale projects.