Summary
Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The acquisition follows the departure of most Annapurna Interactive staff in September 2024 after negotiations with Annapurna Pictures CEO Megan Ellison failed.
Following a significant restructuring in 2024, Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, saw its workforce significantly reduced. 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, purchased Private Division. Haveli reportedly partnered with the former Annapurna staff to manage Private Division's remaining titles, including the anticipated Tales of the Shire (March 2025 release), the ongoing Kerbal Space Program, and an unannounced project from Game Freak.
Private Division's Transition Reflects Industry Instability
The mass exodus from Annapurna Interactive in September 2024 stemmed from failed negotiations with CEO Megan Ellison. While Haveli's acquisition retained approximately twenty Private Division employees, some are expected to be laid off to accommodate the incoming Annapurna team. The future plans of the combined entity, including potential new IP or projects, remain undisclosed, as does the studio's new name and overall direction.
This merger mirrors the broader gaming industry's recent instability, marked by widespread 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.
