Annapurna Interactive, the video game publishing arm of Annapurna Pictures, has seen its entire staff resign following a failed attempt to spin off as an independent entity. The company, which has gained widespread recognition for publishing critically acclaimed indie games like Stray and Outer Wilds, faced this significant internal upheaval after negotiations between its president, Nathan Gary, and Annapurna owner Megan Ellison fell through.

Nathan Gary, the president of Annapurna Interactive, and his leadership team entered discussions with Ellison to spin off the video game publishing division into an independent entity. These talks were part of a broader vision to give the game division more autonomy.

However, Ellison pulled out of the negotiations. This decision sparked dissatisfaction within the leadership team, who had invested significant effort in pushing for a separate division.

Following Ellison’s withdrawal from the negotiations, Gary and his senior team resigned in protest. This initial wave of resignations set off a chain reaction, as around two dozen additional employees—representing nearly the entire team—followed suit.

In a joint statement, the team expressed their regret, stating that it was “one of the hardest decisions” they had to make. Hector Sanchez, a co-founder of the interactive division and former Epic Games executive, has been brought back as the new president.

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.

Ellison said in a statement to Bloomberg News

He reassured game developers working with Annapurna that existing contracts would be honored and the team vacancies would be filled. Despite this reassurance, developers tied to Annapurna have been scrambling to adjust to the sudden leadership change and seek clarity about their ongoing projects​.

This mass departure puts some strain on Annapurna’s upcoming slate, but the company’s agreements with partners like Remedy Entertainment for the Alan Wake and Control franchises remain unaffected since those deals are with the parent company.

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