Earlier this month, Annapurna Interactive experienced a significant upheaval when all 25 of its staff members resigned en masse. This news came as a surprise to many, given that Annapurna has published several critically acclaimed games, including Stray, Outer Wilds, and The Artful Escape, and is currently developing a Blade Runner game. So, what led to this mass exodus? A recent report from IGN provides some insight into the matter.
According to the report, changes in leadership were a major factor, but the sequence of events leading up to the walkout is complex and requires a brief history of the company to fully understand. Annapurna Interactive was founded in 2016 by Megan Ellison, the owner of Annapurna Pictures and daughter of billionaire Larry Ellison. At the time, Annapurna Pictures was facing financial difficulties, and Ellison selected Nathan Gary, Deborah Mars, and Hector Sanchez—all former Sony employees—to steer the new gaming studio forward. Sanchez departed in 2019, and Nathan Vella, co-founder of Capybara Games, joined shortly thereafter. Ellison's involvement waned in 2019, essentially leaving Annapurna Interactive to operate independently, but she re-engaged more actively in 2021.
In the same year, Nathan Gary was appointed president of Annapurna Pictures, though IGN's anonymous sources suggest his focus remained largely on Annapurna Interactive. In early 2024, Gary was either dismissed or resigned due to conflicts with other staffing changes and a recent demotion, according to differing accounts. Other staff members resigned in solidarity, but Ellison later held a video call expressing her desire to retain the entire team, including those who had resigned—a move that apparently succeeded in bringing Gary and others back.
Gary and Ellison then began exploring the idea of creating a spin-off studio, Verset, which would be affiliated with Annapurna Pictures and include Gary and the Annapurna Interactive staff. Verset would oversee all ongoing Annapurna Interactive projects, with ownership split between Verset and Annapurna Interactive leaders. However, some employees were uneasy about Verset, fearing it could create internal competition, and Ellison's decision to rehire Hector Sanchez as Annapurna Pictures' 'president of interactive and new media' further fueled these concerns.
Other concerns included a deal Annapurna Pictures made with Remedy for the publishing rights of Control 2, negotiated by Sanchez without input from Annapurna Interactive staff. The lack of transparency and Ellison's decision-making led employees to give Ellison two weeks' notice before the mass walkout on September 6. Ellison reportedly showed no interest in negotiating and failed to inform Annapurna's development partners about the impending walkout.
Currently, Annapurna Pictures staff are stepping in to ensure that Annapurna Interactive's commitments are met, but the fate of the internally developed Blade Runner 2033: Labyrinth remains uncertain. As for Annapurna Interactive's perspective, a spokesperson described the situation as 'baffling' and stated that the company is now 'focused on moving forward.' They expressed gratitude for the continued support of their development teams and enthusiasm for new job applicants and pitches.
