Ex-Annapurna Devs Launch Private Division

Summary

Former Annapurna Interactive employees have acquired Private Division, a studio previously owned by Take-Two Interactive. The acquisition follows a significant staff exodus from Annapurna Interactive in September 2024 after negotiations with CEO Megan Ellison failed.

Annapurna Interactive, known for publishing acclaimed games like Stray, Kentucky Route Zero, and What Remains of Edith Finch, experienced a major restructuring in 2024. Private Division, established in 2017, was sold by Take-Two Interactive in November 2024, with the buyer and the studio's future remaining uncertain until now. The sale resulted in widespread layoffs.

According to journalist Jason Schreier, Haveli Investments, an Austin-based private equity firm, purchased Private Division. Haveli has reportedly partnered with the former Annapurna staff to manage Private Division's existing portfolio, including Tales of the Shire (slated for March 2025), Kerbal Space Program, and an unannounced Game Freak project.

Private Division's Transition Reflects Industry Instability

The mass departure of Annapurna Interactive employees in September 2024 followed a breakdown in negotiations with Annapurna Pictures. While Haveli's acquisition retained approximately twenty Private Division employees, further layoffs are expected to integrate the Annapurna team. The future direction of the combined entity, including its name and potential new projects, remains undisclosed.

This merger exemplifies the current volatile state of the gaming industry. Years of widespread layoffs and studio closures have created a climate where one group of displaced game developers is absorbing another. This reflects a broader trend of investors retreating from high-risk, large-scale projects.