Following unsuccessful discussions regarding a spin-off, the team at Annapurna Interactive has resigned

The staff of Annapurna Interactive, a unit established by Megan Ellison's Annapurna Pictures in 2016, have departed after failed negotiations with its parent entity. The discussions, spearheaded by Interactive head Nathan Gary, aimed to establish the division as a separate company, due to Annapurna Pictures altering its gaming strategy. Notable projects released by the publisher include Stray, What Remains of Edith Finch, and Outer Wilds.

Negotiations did not conclude successfully, leading to the departure of Nathan Gary and approximately 24 additional team members, according to a Bloomberg report.

Annapurna Interactive had planned to release more than twelve independent games in the upcoming two years, including a new installment for the Silent Hill series. Despite the staffing upheaval, the company stated to Bloomberg that it remains committed to these projects and the video game sector. However, it will need to compensate for the loss of employees through new hires or outsourcing essential roles such as marketing, localization, quality assurance, public relations, and platform management.

The company is seeking to further involve its gaming operations with its television and film divisions. They have rehired Hector Sanchez from Epic Games, one of the original founders of Annapurna Interactive, to serve as president of interactive and new media. They have also recently forged an agreement with Finnish developer Remedy regarding TV and film adaptations of the Control and Alan Wake franchises, also engaging in co-financing for the forthcoming Control video games, as reported by GamesIndustry.biz.