Former Annapurna Devs Launch Private Label

Executive Summary

Following the collapse of negotiations between Annapurna Interactive staff and Annapurna Pictures CEO Megan Ellison in September 2024, a significant portion of Annapurna Interactive's team has acquired Private Division, formerly under Take-Two Interactive's ownership. This acquisition, reportedly facilitated by Haveli Investments, a Texas-based private equity firm, includes several high-profile titles such as Tales of the Shire, Kerbal Space Program, and an unannounced Game Freak project.

Annapurna Interactive, prior to its internal restructuring, published acclaimed games including Stray, Kentucky Route Zero, and What Remains of Edith Finch. Private Division, sold by Take-Two in November 2024, experienced significant layoffs following the sale. The newly formed entity, resulting from this merger, will integrate the remaining Private Division staff with the ex-Annapurna team, though further layoffs are anticipated. The future direction and official name of this combined studio remain undetermined.

The Annapurna-Private Division merger underscores the turbulent state of the gaming industry, marked by widespread layoffs and studio closures in recent years. This consolidation reflects a trend of industry consolidation driven by investor hesitancy towards high-risk, large-scale projects. The integration of two groups of previously laid-off employees symbolizes the current competitive landscape.