Annapurna Interactive, a publisher known for its critically-acclaimed games, has faced an unexpected mass resignation of its entire staff.

This upheaval followed failed negotiations led by President Nathan Gary to separate the gaming division from founder Megan Ellison's company.

The resignations were triggered by unsuccessful discussions regarding a potential spinoff company, which was confirmed by the owner.

Despite the departures, Annapurna Interactive remains operational and plans to hire additional staff while continuing to honor existing contracts.

However, the future of at least thirteen upcoming games published by Annapurna remains uncertain, although new president Hector Sanchez has assured that existing agreements will be upheld.

Developers from studios with upcoming titles have taken to social media to reassure fans that their projects are still on track despite the turmoil.

Annapurna is collaborating with Remedy Entertainment on projects like Control 2 and adaptations of its games for film and television, which are expected to proceed as planned.

The gaming community is closely monitoring the situation, as the outcome could significantly impact the indie gaming landscape.

Despite the challenges, Annapurna Interactive plans to publish over a dozen indie games in the next two years, including a title from the Silent Hill franchise.

Annapurna confirmed that discussions about separating the gaming division did not result in an agreement, emphasizing their commitment to existing games and partnerships.

The departed Annapurna Interactive team is expected to find new opportunities quickly due to their strong track record and industry connections.

In the midst of these developments, Annapurna is also set to debut the horror comedy Nightbitch, starring Amy Adams, at the Toronto International Film Festival.