Ex-Staffer Revive Studio Under New Division

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously under Take-Two Interactive's ownership. This follows the departure of most Annapurna Interactive staff in September 2024 after negotiations with Annapurna Pictures 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 staff exodus. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and future of the studio initially unknown. The sale resulted in widespread layoffs.

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

Private Division's Restructuring Reflects Industry Trends

The mass exodus from Annapurna Interactive in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained around twenty Private Division employees, some are expected to be let go to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains unconfirmed, as does its official name and overall goals.

This merger of Annapurna and Private Division highlights the broader gaming industry's instability, characterized by widespread layoffs and studio closures in recent years. The situation exemplifies the industry's current climate, where investor hesitancy towards high-risk, large-scale projects has led to a wave of job losses and studio consolidations. The absorption of one group of laid-off employees by another reflects this challenging landscape.