Former Annapurna Interactive employees have acquired Private Division, a former Take-Two Interactive subsidiary. The acquisition follows a significant exodus of Annapurna Interactive staff in September 2024 after negotiations with CEO Megan Ellison failed.
Annapurna Interactive, prior to its upheaval, published acclaimed games including 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, initially undisclosed, reportedly is Austin-based private equity firm Haveli Investments. The sale resulted in widespread layoffs at Private Division.
According to Jason Schreier, Haveli Investments and the former Annapurna employees have partnered to manage Private Division's remaining assets. This includes upcoming titles like Tales of the Shire (March 2025), the Kerbal Space Program, and an unannounced Game Freak project.
The majority of Annapurna Interactive's staff departed in September 2024 due to failed negotiations. While Haveli's purchase retained approximately twenty Private Division employees, further layoffs are anticipated to accommodate the incoming Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains undefined.
This merger exemplifies the broader gaming industry's recent instability, marked by widespread layoffs and studio closures. The integration of two groups of displaced game developers underscores the industry's current climate, characterized by investor hesitancy towards high-risk, large-scale projects.
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