Annapurna’s entire video game team has reportedly left the company

The entire Annapurna Interactive team has left the company after its executives walked out, according to Bloomberg. Apparently, the video game publisher’s president, Nathan Gary, had been negotiating with Annapurna Pictures’ founder Megan Ellison to spin off Annapurna Interactive into its own entity. A company spokesperson confirmed to Bloomberg that the parties had explored the possibility of a spinoff, but their discussions broke down. Gary and the publisher’s other executives had resigned and walked out as a result, and the team’s other members had followed suit.

“All 25 members of the Annapurna Interactive team collectively resigned,” the team said in a joint statement. “This was one of the hardest decisions we have ever had to make and we did not take this action lightly.”

Annapurna Interactive, like other publishers, teams up with developers, funds their games, takes care of the QA process and then markets and distributes titles when they’re ready for the public. Its partner developers have reportedly been scrambling to find out what the team exodus means for them over the past few days. Bloomberg says Hector Sanchez, an Annapurna Interactive co-founder, assured developers that the company will honor their agreements. Sanchez had been at Epic Games the past five years, but he recently rejoined the publisher as its president for Interactive + New Media. Annapurna will also reportedly hire new staff members to replace those who left, essentially building a brand new team.

“Our top priority is continuing to support our developer and publishing partners during this transition,” Ellison told Bloomberg News. “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.”

The publisher made a splash when it debuted with What Remains of Edith Finch back in 2017, and it now has a number of critically acclaimed and popular games under its belt. Its games include the cat simulator Stray, a puzzle adventure game featuring a world-hopping beetle called Cocoon, pop album rhythm action game Sayonara Wild Hearts, and action adventure game Outer Wilds, which is set in a solar system trapped in a time loop.