A significant dispute with Megan Ellison resulted in the mass resignation of Annapurna Interactive's entire staff, effectively shutting down the video game division of Annapurna Pictures.
Annapurna Interactive Faces Staff Exodus Following Contractual Impasse
The Fallout at Annapurna Interactive
Annapurna Interactive, renowned for publishing acclaimed games like Stray and What Remains of Edith Finch, has experienced a complete staff resignation. This dramatic event followed unsuccessful negotiations between the publishing house's employees and its parent company.
Details remain limited, but it appears the staff, under the leadership of then-president Nathan Gary, aimed to establish Annapurna Interactive as an independent entity. However, these negotiations failed, leading over 20 employees to follow Gary's resignation.
According to Bloomberg, Gary confirmed, "All 25 members of the Annapurna Interactive team collectively resigned." The team released a joint statement emphasizing the difficulty of the decision and assuring it wasn't taken lightly.
Annapurna Pictures' Ellison assured partners of their commitment to ongoing projects and expansion within interactive entertainment, stating to Bloomberg News, "We continue to explore opportunities for a more integrated approach to linear and interactive storytelling across film, television, gaming, and theater."
The consequences of this mass exodus are substantial. Indie developers collaborating with Annapurna now face uncertainty, scrambling to establish new contact points and confirm the continuation of existing agreements.
Remedy Entertainment, whose upcoming Control 2 received partial funding from Annapurna Interactive, addressed the situation via communications director Thomas Puha on Twitter (X): "Many of you are reaching out about the news around Annapurna. Thank you for your care! Remedy’s deal for Control 2, including Alan Wake and Control AV rights, is with Annapurna Pictures, and we are self-publishing Control 2."
In response, Annapurna Interactive appointed Hector Sanchez, a co-founder, as the new president. Anonymous sources cited by Bloomberg reported Sanchez's assurance that the company will uphold existing contracts and replace departing staff.
Over a week prior, Annapurna announced a restructuring of its gaming operations. Sanchez's appointment follows the departure of former president Nathan Gary and the co-heads of the indie division, Deborah Mars and Nathan Vella.
For further details on Annapurna's reorganization, refer to our related article.