An initial report, broken by The Hollywood Reporter stated that Gary, along with senior members Deborah Mars and Nathan Vella all resigned last week. Today, a statement was released, announcing that on top of that, all 25 members of Annapurna Interactive have resigned. Bloomberg confirmed that the reason behind the mass employee walkout was due to failed negotiations between Nathan Gary and Annapurna Interactive's owner, Megan Ellison, as Gary had wanted to spin off the video game part of the brand into an independent company.
The new president of the company, Hector Sanchez, has taken over duties, and will be honoring the existing publishing contracts for indie titles still due out. The following is an official statement made by Ellison to Bloomberg.
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.
Source: Bloomberg