Billionaire-Owned Video Game Publisher Faces Mass Exodus of Talent

Annapurna Pictures’ gaming division, Annapurna Interactive, is poised for a transformation after the resignation of its entire gaming workforce, following a dispute with management.

As reported by Bloomberg, Annapurna Interactive’s president Nathan Gary was engaged in discussions with company founder Megan Ellison to transition the gaming unit into an independent entity. However, the talks collapsed when Ellison withdrew from negotiations, leading Gary and the full team of approximately 25 individuals to resign from their roles.

Here’s the joint statement from Gary and his colleagues:

“All 25 members of the Annapurna Interactive team collectively resigned. This was one of the hardest decisions we have ever had to make, and we did not take this action lightly.”

Annapurna Interactive statement/Bloomberg

In light of these developments, Annapurna Interactive has announced the return of former Epic Games executive Hector Sanchez as the president of interactive and new media, with Paul Doyle appointed as the new head of strategy. Reports indicate that the company is committed to hiring replacements for the resigned personnel and continuing their current projects, ensuring that contractual obligations are met despite this significant disruption. Their strategy to navigate these challenges includes aggressive recruitment and potential collaboration with third-party partners to ease the transition.

Throughout this tumultuous time, Ellison reaffirmed the organization’s dedication to its associates and clientele:

“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.”

Megan Ellison/Bloomberg

Since launching in 2016, Annapurna Interactive has emerged as a prominent player in the gaming industry, releasing noteworthy titles such as Kentucky Route Zero, Outer Wilds, Donut County, Sayonara Wild Hearts, Wattam, What Remains of Edith Finch, Telling Lies, Stray, and Neon White.

The organization announced the establishment of an internal game development studio in 2020, subsequently promoting Chelsea Hash to a leadership role in 2022. This was complemented by the announcement of Blade Runner 2033: Labyrinth in 2023, which has generated significant excitement among fans, although the release may face delays due to the recent developments.

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Annapurna Interactive has dealt with controversy before. In March 2022, a report from the gaming YouTube channel People Make Games uncovered issues regarding a toxic work environment at three indie studios—Mountains, Fullbright, and Funomena—all of which were published by the Ellison-led firm. At that time, the company attempted to address these allegations through minor staff adjustments.

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