Reports suggest that a division within Annapurna Interactive is attributed to employees' apprehensions about the future direction of the company
The recent mass departure of employees from Annapurna Interactive has shed light on some internal issues, with sources telling IGN that staff were reportedly caught off-guard by an agreement with Remedy Entertainment, causing confusion and worry about the company's trajectory.
It's been reported that the walkout was tied to unsuccessful spin-off discussions intended to separate the games division from its parent entity, Annapurna Pictures. There were plans to establish a new company named Verset to serve as Annapurna's independent segment, as described in an IGN article.
As talks progressed, the team discovered that Hector Sanchez, co-founder of Annapurna Interactive, had returned to take the helm of interactive and new media without prior disclosure to them. This move was made by Annapurna Pictures CEO Megan Ellison. Sanchez had departed from Annapurna in 2019 and had a stint at Epic Games until February 2024.
According to a company spokesperson, discussions between Sanchez and Ellison had been ongoing since earlier this year, resulting in his appointment to oversee high-profile gaming projects and transmedia initiatives.
This led to the August announcement of a partnership between Annapurna Pictures and Remedy Entertainment, which the Interactive team only learned about upon its public release.
Annapurna Pictures eventually decided to halt discussions on spinning off the Interactive division, citing Nathan Gary's lack of engagement as the reason.
Nevertheless, insiders expressed concerns about Ellison's increasing participation in the business's operations, which heightened discomfort and preceded the walkout.
Despite the upheaval, Annapurna has confirmed that development on projects like Blade Runner 2033: Labyrinth will push ahead, even after the resignation of its director Chelsea Hash and other key team members.
An Annapurna representative commented on the situation by stating, "It's a challenging scenario, but our priority is progressing. We are having positive engagements with most of our current development partners and value their cooperation."
