Billionaire-owned popular video games publisher oversees mass exodus

Annapurna Pictures’ gaming arm, Annapurna Interactive, is set to have a new-look team after its entire gaming staff resigned after a fallout with leadership.

According to Bloomberg, Annapurna Interactive president Nathan Gary was in talks with Annapurna founder Megan Ellison about making the gaming division an independent company. However, the negotiations broke down after Ellison pulled out of the deal, prompting Gary and the entire staff (reportedly 25 members) to step away from their positions.

Here’s how the joint statement from Gary and the other employees reads out:

“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

Amid these events, Annapurna Interactive announced the re-induction of former Epic Games executive Hector Sanchez as president of interactive and new media, with Paul Doyle introduced as head of strategy. According to reports, the company plans to replace the departed staff and continue the existing projects, honoring their contracts despite the major hiccup. The modus operandi to keep things on track will involve aggressive hiring across the departments, with external help from potential third-party involvements to cushion the blow.

During a period of turmoil, Ellison continues to drive home the company’s commitment towards its partners and customers:

“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 its inception in 2016, Annapurna Interactive has been one of the more active publishers in the gaming sphere, churning out titles like Kentucky Route Zero, Outer Wilds, Donut County, Sayonara Wild Hearts, Wattam, What Remains of Edith Finch, Telling Lies, Stray, and Neon White.

The company announced the formation of an internal game development studio in 2020, later tapping Chelsea Hash for a leadership position in 2022. This move was followed by the announcement of Blade Runner 2033: Labyrinth in 2023. There is major anticipation among fans regarding the title, though the release date might get pushed considering the aforementioned news.

Annapurna Interactive has been hit by controversy before, when, in March 2022, gaming YouTube channel People Make Games’ exposé highlighted the presence of toxic work culture at three indie studios: Mountains, Fullbright, and Funomena. All these studios had the Ellison-led company as its publisher, and the company made an active effort at the time to brush these allegations aside by making minor staff changes.