Annapurna Interactive, the acclaimed video game publisher, is grappling with internal upheaval following a series of disputes and leadership changes. The company has splintered into two groups as tensions came to a head after a fallout with owner Megan Ellison. Disagreements revolved around attempts to spin off the video game division as an independent entity.
Employees had varying opinions about Ellison, with some expressing mistrust due to her past behavior. The situation escalated in mid-March when employees were abruptly informed that co-founder James Masi had been let go, resulting in a shake-up that reached president Nathan Gary. Ellison reinstalled Gary as head of Interactive, deeming Masi’s role redundant, only for Gary to also leave around the same time.
Confusion and anger ensued among employees, leading to several resignations in protest. During a subsequent video call, Ellison announced that all departed staff had returned, and discussions for a potential spin-off named Verset began. Former Sony producer Hector Sanchez was to lead AAA and AA projects.
Annapurna turmoil amid leadership changes
However, a lack of clear communication left employees uncertain about the company’s direction. By August, spin-off discussions appeared to have stalled, and Ellison began exerting greater control over deals and budgets, further discomforting employees.
Ultimately, all 25 employees, including the leadership team, signed a joint resignation letter, leaving the company on September 6. This exodus left Ellison, Sanchez, and Chief Strategy Officer Paul Doyle to manage Annapurna’s gaming efforts. Annapurna Interactive sources indicated they received no guidance on communicating the resignations to partner developers.
However, an Annapurna spokesperson claimed there were active conversations about handling the news. Currently, Annapurna is divided into the departed staff potentially forming Verset and a small leadership team at Annapurna supporting around 40 projects. In a statement, Annapurna expressed a focus on moving forward, emphasizing conversations with development teams and an influx of job applicants.
They highlighted the company’s mission to tell original stories. As Annapurna navigates this tumultuous period, the company remains focused on rebuilding and maintaining strong relationships with existing and new development partners.
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