Summary

Former Annapurna Interactive employees have acquired Private Division, a former Take-Two Interactive subsidiary. The acquisition follows a mass exodus from Annapurna Interactive in September 2024 after negotiations with CEO Megan Ellison failed.

Annapurna Interactive, prior to its upheaval, published acclaimed games 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, initially undisclosed, reportedly is Haveli Investments, an Austin-based private equity firm. The sale resulted in widespread layoffs at Private Division.

According to journalist Jason Schreier, Haveli Investments and the former Annapurna staff have partnered. This new entity will manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025), the Kerbal Space Program, and an unannounced Game Freak project.

Private Division's Transition Reflects Industry Trends

The departure of most Annapurna Interactive employees in September 2024 stemmed from failed negotiations with Annapurna Pictures CEO Megan Ellison. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are anticipated to integrate the Annapurna team. The future direction, name, and broader goals of the combined entity remain uncertain.

This merger exemplifies the current gaming industry climate. Recent years have witnessed significant layoffs and studio closures. The integration of two groups of displaced gaming professionals underscores the industry's aggressive approach, driven by investor hesitancy towards high-risk, large-scale projects.