Summary
Former Annapurna Interactive employees have acquired Private Division, a studio previously under Take-Two Interactive's ownership. The majority of Annapurna Interactive's workforce departed its parent company in September 2024 following failed negotiations with CEO Megan Ellison.
Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced significant internal upheaval in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, resulting in widespread layoffs. The buyer remained anonymous until recently.
According to journalist Jason Schreier, the acquirer is reportedly Haveli Investments, an Austin-based private equity firm. Haveli and the former Annapurna staff have reportedly agreed to manage Private Division's remaining projects, including Tales of the Shire (slated for March 2025), the Kerbal Space Program franchise, and an unannounced title from Pokémon developers Game Freak.
Private Division's Transition Reflects Industry Instability
The mass exodus from Annapurna Interactive in September 2024 followed a breakdown in talks with Annapurna Pictures' CEO. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are anticipated to integrate the Annapurna team. The future direction of the combined entity—its name, IP strategy, and project pipeline—remains uncertain.
This merger of former Annapurna and Private Division staff underscores the current volatile state of the gaming industry. Recent years have witnessed widespread job losses and studio closures. The situation reflects a broader trend of risk aversion among investors, leading to a shift in industry practices. The absorption of one group of laid-off game developers by another highlights the challenging landscape facing the industry.
