The mass exodus of staff from successful indie games company Annapurna earlier this month has been described as “disconcerting” by a company spokesperson.
The publisher, responsible for titles such as Stray, Outer Wilds and Cocoon, saw its entire staff resign following a dispute with the company's owner that put its future in jeopardy.
Developers working on projects with Annapurna have assured players that they will be able to continue playing planned future releases, but it is unclear how the dispute will be resolved or how Annapurna will continue its projects. However, it is openly hiring replacement staff.
“The whole situation is disconcerting, but we are now focused on moving forward,” reads a statement from an Annapurna spokesperson to Agency.
“We've had some really great conversations with an overwhelming majority of our existing development teams, and we're grateful for their input. If our inbox is any indication, a ton of developers continue to want to be a part of what we're building, and we look forward to seeing their pitches. We've also had an influx of quality job applicants, and we're excited to build a team that's passionate about our mission of telling original stories not being told anywhere else. PS: We're hiring.”
One project that finds itself in a precarious position is Annapurna's Blade Runner 2033: Labyrinth, its first in-house game. The game's director, Chelsea Hash, appears to have left the company (according to LinkedIn), and, Agency has learned, all other full-time members of the development team have left. Annapurna told Agency that development on the project will continue despite these departures.
So what exactly happened to make the entire staff leave at once?
According to an extensive report by Agency, the crisis began in mid-March 2024, when Annapurna Interactive co-founder James Masi was suddenly and unexpectedly fired. Annapurna president Nathan Gary also left the company, something Annapurna claimed was voluntary. However, sources told Agency that both executives had been fired, sparking fury among staff; some even walked out in protest.
When Annapurna founder Megan Ellison reportedly expressed to the staff her desire for the entire staff to stay, Masi, Gary, and other staff members returned and a new plan was formed: to form a new company called Verset with ownership split between Annapurna and Verset leaders. However, the staff ultimately became skeptical of the plan due to the return of Hector Sanchez (who had previously left the company) to work on game projects without their knowledge.
This led to a deal between Remedy and Annapurna Pictures for the film and TV rights to Control and Alan Wake, apparently without the staff's knowledge. Ellison's intention for the two companies, a spokesperson told Agency, was for Verset to handle indie games and for Sanchez to lead AAA and transmedia projects. Sources also told Agency that Ellison herself began to exert more control over Annapurna Interactive in ways that made them uncomfortable.
The situation came to a head in August, when all 25 Annapurna Interactive employees signed a joint resignation letter and gave two weeks' notice before leaving on September 6. The associated developers apparently did not find out about this mass walkout until a day or two beforehand, apparently due to a dispute over who was responsible.
While the departed staff could potentially continue at the Verset company (according to a website currently online), Annapurna has had to struggle to replenish its workforce.
Annapurna's upcoming projects include Beethoven and Dinosaur's Mixtape, Wanderstop from The Stanley Parable creator Davey Wreden, and Silent Hill: Townfall from No Code.