Annapurna Interactive, the subtly-yet-celebrated publisher behind indie hits like Kentucky Route Zero and Stray, has effectively collapsed, with its entire staff quitting en masse.
This beyond stunning move just left the future of Annapurna's ongoing projects in question, especially Morsels (above), throwing the gaming industry into... quite the frenzy.
The mass exodus happened right after negotiations between the employees and the company's owner, Megan Ellison, fell through. According to reports from the Hollywood Reporter and Bloomberg, Annapurna Interactive's senior leadership team, along with its over 20-person staff, have all resigned. This leaves a HUGE questionmark over the status of active development deals and partnerships, among so much else... In all my years... I don't think I've ever seen something like this happen in the video game industry. For the entire company to just up and quit in unison like this is just insane!
The exodus also saw the departure of Nathan Gary, the company's (now former) president and one of the founding members of Annapurna Interactive.
In his place, Hector Sanchez has been appointed as the new president. Sanchez, another founding member of Annapurna Interactive, recently returned from a brief stint at Epic Games.
But things get even more interesting when we dig deeper into the cause of this collapse. Jason Schreier's report for Bloomberg reveals that Gary had been in negotiations with daughter of multibillionaire Larry Ellison (Oracle Corp money), Megan Ellison to spin off Annapurna Interactive as an independent entity, separate from its parent company, Annapurna Pictures - which interestingly enough - was exploring bankruptcy back in 2019...
However... when Ellison pulled out of these negotiations, Gary, his leadership team, and the ENTIRE staff chose to resign. It makes me think there was a LOT more going on behind the scenes beyond just a casual conversation.
A spokesperson for Annapurna confirmed the failure of these negotiations, with Ellison stating:
"Our top priority is continuing to support our developer and publishing partners during this transition. We're committed to not only our existing slate of games but also expanding our presence in the interactive space as we continue to look for opportunities to take a more integrated approach to linear and interactive storytelling across film and TV, gaming, and theater."
This situation has caused chaos for developers currently working with Annapurna. Many are now scrambling to understand if their publishing partnerships are still valid. Aura Triolo, the animation lead for the Annapurna-published game Wanderstop, humorously summed up the situation on BlueSky: "currently being published by Annapurna voice* haha."
A key element of this drama is Remedy Games' whole involvement with Annapurna Interactive. Just recently I spoke about Remedy in greater detail, expressing a belief that the company’s intentions seem to be more about pushing propaganda and political agendas rather than focusing on creating great games. I questioned whether their heart is in the right place when it comes to game development... and now, given Remedy's recent announcement of a partnership with Annapurna for the future of the Control series, this context makes one wonder if Remedy's political leanings and questionable priorities may have contributed to Annapurna's internal tensions - though to be fair - this remains complete speculation at this point.
It's notable, however, that Remedy's deal remains intact since it was made with the parent company, Annapurna Pictures, and not the now-defunct interactive subsidiary... Oh the tangled webs we weave...
This unprecedented mass resignation comes at a tumultuous time for the gaming industry, which has already been hit by mass layoffs and consolidation. For a publisher as prominent as Annapurna Interactive to see its entire staff walk out the door over the potential of remaining a subsidiary is extraordinary and sends a stark message about the state of creative independence within corporate structures.
As the video game industry continues to navigate these wild times, the fate of Annapurna Interactive's many beloved projects remains uncertain, and developers and gamers alike are left wondering ...what will come next.
~Smash
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