Summary

• Former Annapurna Interactive staff have taken over the operations of Private Division, a studio previously owned by Take-Two Interactive.
• The majority of Annapurna Interactive's staff left its parent company in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison fell apart.

Ex-staffers from troubled publisher Annapurna Interactive have entered into an agreement to take over the operations of Private Division, a studio formerly owned by Take-Two Interactive. Before an abrupt shakeup in 2024, Annapurna Interactive was renowned for publishing critically acclaimed titles such as Stray, Kentucky Route Zero, and What Remains of Edith Finch.

Private Division, established in 2017, was sold by its parent company Take-Two Interactive in November 2024. At the time of the sale, the buyer remained undisclosed, and the future of the studio and its existing titles was uncertain. The sale also resulted in the majority of Private Division's staff being laid off, reflecting broader industry trends of studio closures and workforce reductions by Take-Two.

According to a report by Jason Schreier, Private Division's buyer is allegedly Austin-based private equity firm Haveli Investments, which has a broad investment focus in the technology and gaming sectors. Haveli and the former Annapurna staff have reportedly reached a deal to manage and distribute games still under Private Division's banner, including the anticipated March 2025 release Tales of the Shire, the ongoing Kerbal Space Program, and an unannounced project from Game Freak, the developer and co-owner of Pokemon.

Private Division Shakeup Continues Precarious Industry Trend

The majority of Annapurna Interactive's staff departed from their parent company in September 2024 following unsuccessful negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's acquisition of Private Division initially retained around twenty employees, some of these legacy staff are now reportedly facing layoffs to accommodate the incoming Annapurna team. It remains unclear whether the Annapurna team plans to develop new IP or undertake new projects. The name and overarching mission of the newly formed studio have yet to be revealed.

The merger of Annapurna and Private Division highlights the shifting dynamics within the broader gaming industry, which has seen tens of thousands of layoffs and numerous studio closures over recent years. This move represents a poignant evolution within the sector, where one group of displaced gaming professionals is absorbed by another, reflecting the industry's increasingly ruthless approach as investors shy away from high-risk, high-investment projects.