Former Annapurna Interactive Team Launches Private Division

Summary

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

This acquisition follows the November 2024 sale of Private Division by Take-Two Interactive. The buyer remained anonymous at the time, leading to widespread layoffs at Private Division.

According to Jason Schreier, the undisclosed buyer is reportedly Haveli Investments, an Austin-based private equity firm. Haveli and the former Annapurna staff have reportedly partnered to manage Private Division's existing portfolio, including the anticipated March 2025 release of Tales of the Shire, the ongoing Kerbal Space Program, and an unannounced title from Pokémon developers Game Freak.

Private Division's Transition Reflects Industry Instability

The mass exodus from Annapurna Interactive in September 2024 stemmed from a breakdown in talks with CEO Megan Ellison. While Haveli's acquisition retained roughly twenty Private Division employees, further layoffs are expected to accommodate the incoming Annapurna team. The future plans of this combined entity, including potential new IPs or projects, remain unclear, as does its official name and overall direction.

This merger underscores the volatile state of the gaming industry, marked by significant job losses and studio closures in recent years. The integration of two groups of laid-off game developers symbolizes the industry's increasingly ruthless approach, driven by investor hesitancy towards high-risk, large-scale projects.