Annapurna Interactive staff resigns after failed spinoff negotiations

The staff of Annapurna Interactive, the company’s gaming branch, has resigned en masse after failed negotiations with founder Megan Ellison. This includes Annapurna Interactive president Nathan Gary as well as several other executives and two dozen staffers. Gary was negotiating with Ellison to spin off Interactive into its own independent entity, and Ellison pulled out of said negotiations.

Bloomberg originally reported on the resignations, citing anonymous sources, and later confirmed it with a statement from Gary and the group: “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.”

Reportedly, game developers are unsure as to the future of their projects without the Interactive team. Hector Sanchez, the gaming division’s new president, said that the company will hire new staff and honor its existing contracts.

Ellison said in a separate statement to Bloomberg that the team is working on solutions for its game developer partners: “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.”

In a statement to Bloomberg, former Annapurna Interactive head Nathan Gary said, “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.”

Megan Ellison runs Annapurna, the larger entertainment company, which makes auteur-driven films. The company’s films include Zero Dark Thirty, Her, American Hustle, Sausage Party and more.

In August, Annapurna Interactive announced a deal with video game developer Remedy Entertainment, which which is making Control 2. Under that deal, Annapurna planned to develop film and TV projects related to Remedy’s Alan Wake and Control 2. That deal appears like it will be fulfilled.

Some of Annapurna Interactive’s top indie games were Outer Wilds, What Remains of Edith Finch, Stray and Cocoon.