Bloomberg reports the entire staff of video game publisher Annapurna Interactive has resigned. The total exit has reportedly caused chaos among the publisher’s game development partners.
Reports of upheaval first circulated last week after The Hollywood Reporter broke that Nathan Gary stepped down as president of Annapurna and was quickly followed by the co-heads of the gaming division, Deborah Mars and Nathan Vella.
The mass resignation reportedly follows “a dispute” with Annapurna Pictures owner Megan Ellison, the daughter of billionaire Oracle Corporation co-founder Larry Ellison. The report says that Gray and the team were negotiating with Ellison “to spin off the video-game division as an independent entity,” but the deal fell through.
Bloomberg reports that Annapurna confirmed that a deal to spin-off the publishing arm of the company was being explored, but “the parties failed to reach an agreement.” The company issued a statement from Ellison stating the company’s “top priority” is supporting developer and publishing partners.
“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,” Ellison said in the statement to Bloomberg News. Existing games and projects will reportedly remain under the Annapurna umbrella.
The report says that Annapurna Interactive co-founder Hector Sanchez recently returned as the new president.
Annapurna Interactive has made a name for itself in the indie game space as the publisher of darlings like Journey, Stray, Outer Wilds, What Remains of Edith Finch, and many more. Last month, Remedy Entertainment announced a partnership with Annapurna Interactive to co-finance Control 2.
Cinelinx has reached out to Annapurna Interactive with a request for more information.