Employees at Annapurna Interactive quit following disagreement with owner.

Annapurna Interactive, a renowned game publisher for indie titles, has recently undergone a major shake-up. After failed negotiations with the company's owner, Megan Ellison, the entire team at Annapurna Interactive has resigned. This move has left the publisher's future uncertain, as the team behind the division, which is a subsidiary of film company Annapurna Pictures, has collectively stepped down due to a dispute with Ellison.

For the past eight years, Annapurna Interactive has been a reliable force in the gaming industry, publishing acclaimed titles such as Kentucky Route Zero, Donut County, Outer Wilds, Neon White, and Stray. However, with the recent resignations, the company's direction and stability have been called into question.

The conflict between Ellison and Annapurna Interactive's president, Nathan Gary, arose when Gary wanted to make the gaming division a separate entity. When Ellison backed out of the negotiations, Gary and other executives resigned, followed by the rest of the team. In a joint statement, Gary and his team expressed the difficulty of their decision, stating, "This was one of the hardest decisions we have ever had to make and we did not take this action lightly."

In response to the resignations, Annapurna confirmed that they had explored the idea of separating the gaming division in a statement to Bloomberg. However, they were unable to reach an agreement with the parties involved. Ellison emphasized that their top priority is to continue supporting their developer and publishing partners during this transition. She also stated their commitment to expanding their presence in the interactive space, taking a more integrated approach to storytelling across film, TV, gaming, and theatre.

As for the existing games and projects funded and handled by Annapurna, a spokesperson confirmed that they will remain under the label. This includes announced titles like Wanderstop and Silent Hill: Townfall. Hector Sanchez, who co-founded Annapurna Interactive in 2016, has taken over as the new president of the publisher. He has reassured developers that existing contracts will be honored, and new staff will be hired to replace those who have resigned.

Sanchez, who recently rejoined Annapurna after a stint at Epic Games, was initially set to lead the gaming arm once the team had separated from the main company. However, with the recent resignations, he is now leading the division entirely. It is unclear if the team who resigned will return under a new company, but it is a possibility.

In other news, Annapurna has announced its partnership with developer Remedy to co-finance Control 2, as well as produce TV and movies based on the studio's other properties such as Alan Wake. This news comes amidst a flurry of changes within the company, including layoffs of 650 staff members and the departure of key executives.

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