The entire Annapurna Gaming Team has resigned.

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The entire staff of Annapurna Interactive’s gaming division has reportedly resigned from the company amid a leadership dispute. Bloomberg Report.

The report, which IGN can confirm based on conversations with our own sources, states that Annapurna Interactive CEO Nathan Gary was recently in negotiations with Annapurna founder and billionaire Megan Ellison about spinning off the gaming segment as a separate company. However, Ellison ultimately withdrew from the negotiations, at which point Gary resignedHe was joined by nearly 30 others, including co-heads of department Deborah Mars and Nathan Vella, as well as the entire remaining Annapurna Interactive team.

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

While negotiations were still ongoing, Annapurna Interactive Re-Hires Former Epic Games CEO Hector Sanchez as president of interactive and novel media, and Paul Doyle as head of strategy. IGN understands that Sanchez was supposed to run Annapurna’s gaming operations in Gary’s absence when his part of the company was spun off. With Gary stepping down, Sanchez took over.

As Bloomberg reports and IGN has also heard, Sanchez spoke with development partners this week to assure them that Annapurna will continue its current contracts and replace departing employees. An Annapurna spokesperson confirmed to IGN that this plan will include both filling in some roles and working with outside parties to fill gaps where needed.

“Our highest priority is to continue to support our developer and publishing partners through this transformation,” Ellison told Bloomberg. “We are committed not only to our current games offerings, but also to expanding our presence in the interactive space as we continue to explore opportunities for more integrated approaches to linear and interactive storytelling across film and television, games and theater.”

Annapurna Interactive, a division of Annapurna Pictures, has become known for its catalog of boutique, critically acclaimed independent games. In recent years, the studio has enjoyed success and awards for games like Cocoon, Stray, Neon White, The Artful Escape, Sayonara Wild Hearts, and more. Just last month, Annapurna Pictures partnered with Alan Wake 2 developer Remedy Entertainment to fund ongoing development, as well as create television and film versions of its intellectual property. However, Annapurna Interactive has also been subject of investigation by People Make Games, accusing the company of supporting multiple founders who were known to create toxic work environments at partner studios.

Rebekah Valentine is a senior reporter for IGN. Have a story tip? Send it to rvalentine@ign.com.

After publication, this article was amended to reflect statements from Annapurna Interactive and information from a company spokesperson.

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