Megan Ellison, the award-winning daughter of billionaire Larry Ellison, has a headache on her hands

• Annapurna Interactive's entire 25-member staff resigned this week amid internal tensions.
• Megan Ellison, the daughter of billionaire Larry Ellison, owns the company.
• The resignations came after failed talks to separate the studio into its own company.

Megan Ellison's award-winning video game company has a problem: Nobody wants to work there.

Ellison is the daughter of Larry Ellison, the billionaire cofounder of the world's third-largest software company, Oracle. Megan Ellison founded her film studio, Annapurna Studios, in 2011, later adding Annapurna Interactive, the company's gaming division, in 2016.

Annapurna Interactive has produced several popular games since 2016, including "Outer Wilds," "What Remains of Edith Finch," and "Stray," which lets the player discover a futuristic, cyberpunk-inspired city through the eyes of a cat. "Stray" won Best Debut Indie Game at the 2022 Game Awards.

Despite its success, tension inside the company reached a breaking point this week when the studio's entire 25-member staff resigned, Bloomberg reported. Former Annapurna president and cofounder Nathan Gary — who left the company earlier this month — told the outlet the staff's collective decision to leave was "the hardest decision we have ever had to make, and we did not take this action lightly."

The mass resignations followed failed talks between Gary, other Annapurna Interactive executives, and Ellison, about letting the studio separate into its own company, according to Bloomberg. Deborah Mars and Nathan Vella, two top executives in the gaming division, also resigned from the company, according to The Hollywood Reporter.

Annapurna hired Hector Sanchez, former head of content and Unreal Engine Games at Fortnite maker Epic Games, to lead its interactive divisions moving forward.

Annapurna Studios did not immediately return a request for comment from Business Insider. The company told Bloomberg that it explored the idea of a "spinoff" company, but could not reach an agreement.

"Our top priority is continuing to support our developer and publishing partners during this transition," Ellison told the outlet. "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."