Annapurna's Game Division Exits, Future Unclear

A major internal conflict involving Megan Ellison has resulted in the complete resignation of Annapurna Interactive’s staff—the video game publishing arm of Annapurna Pictures.

Annapurna Interactive Staff Resign Following Negotiation Collapse

Fallout at Annapurna Interactive

Annapurna Interactive, the acclaimed publisher behind titles such as Stray and What Remains of Edith Finch, is facing a critical turning point. The entire team has reportedly resigned following unsuccessful negotiations between employees and parent company Annapurna Pictures.

Although specific details remain limited, reports suggest that the Annapurna Interactive team, led by former president Nathan Gary, aimed to establish the gaming division as an independent entity. When these discussions reportedly collapsed, more than 20 employees followed Gary’s resignation shortly thereafter.

“All 25 members of the Annapurna Interactive team collectively resigned,” Gary stated, according to Bloomberg. In a unified message, the departing team emphasized that “this was one of the hardest decisions we have ever had to make, and we did not take this action lightly.”

Megan Ellison of Annapurna Pictures expressed reassurance to current partners, affirming the company's commitment to supporting ongoing projects and growing its presence in interactive entertainment. “We continue to explore opportunities for a more integrated approach to storytelling across film, television, gaming, and theater,” Ellison told Bloomberg News.

The impact of this mass departure is significant. Independent developers who collaborated with Annapurna are now in uncertainty, with some reportedly "scrambling to find new points of contact and determine whether the company will uphold its commitments," per Bloomberg.

Remedy Entertainment, the studio behind the upcoming Control 2, which received partial funding from Annapurna Interactive, responded via Twitter (X) through communications director Thomas Puha.

“Many of you are reaching out about the news surrounding Annapurna,” Puha wrote. “Thank you for your concern! Remedy’s deal for Control 2, including the rights to Alan Wake and Control AV content, is with Annapurna Pictures, and we are self-publishing Control 2.”

In response to the resignations, Annapurna Interactive has named Hector Sanchez, a co-founder of the company, as the new president. According to anonymous sources cited by Bloomberg, Sanchez has assured partners that Annapurna will honor existing contracts and work swiftly to replace departed staff.

This development follows Annapurna’s recent restructuring announcement within its gaming operations. Sanchez has been appointed to lead the indie games department after the departures of former president Nathan Gary and co-heads of the indie division, Deborah Mars and Nathan Vella.

For further insight into Annapurna’s reorganization strategy, please refer to our detailed coverage below!