Summary

Former employees of Annapurna Interactive have acquired the operational reins of Private Division, a studio previously under Take-Two Interactive's ownership. The majority of Annapurna Interactive's workforce departed their parent company in September 2024 following failed negotiations with Annapurna Pictures CEO Megan Ellison.

Annapurna Interactive, prior to its 2024 restructuring, published several acclaimed games, including 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 remained anonymous initially, and the sale resulted in widespread layoffs.

According to journalist Jason Schreier, the acquiring entity is reportedly Haveli Investments, an Austin-based private equity firm. Haveli and the former Annapurna staff have allegedly partnered to manage Private Division's existing portfolio, encompassing titles like the anticipated Tales of the Shire (March 2025 release), the established Kerbal Space Program, and an unannounced project from Pokémon developer Game Freak.

Private Division's Transition Reflects Industry Instability

The departure of most Annapurna Interactive employees in September 2024 stemmed from disagreements with CEO Megan Ellison. While Haveli's purchase of Private Division retained approximately twenty employees, further layoffs are expected to accommodate the incoming Annapurna team. The future direction of the combined entity, including potential new IP or projects, remains uncertain, as does the studio's name and overall mission.

The merger of Annapurna and Private Division's operations underscores the current state of the gaming industry, characterized by significant layoffs and studio closures in recent years. This situation, where one group of laid-off game developers absorbs another, exemplifies the industry's aggressive approach as investors retreat from high-risk, large-scale projects.