According to one former studio employee, representatives of Annapurna Interactive had been quoted responding that 'without strong personalities, games don't get made.' Chris Bratt of People Make Games saw these incidents as part of a greater pattern of auteur culture that can be found across the independent film and video game industry. In hopes of getting Annapurna Interactive to mediate, employees stated that the publisher was siding mostly with the founders in question. In all three cases, employees reportedly reached out to Annapurna Interactive, addressing concerns regarding abuse and a toxic work environment being created by the studio founders. In March 2022, video game journalism YouTube channel People Make Games reported on three video game studios publishing under Annapurna Interactive - Mountains, Fullbright, and Funomena. In October 2020, Annapurna established an internal development studio in Los Angeles.

In May 2020, it was announced that Nathan Vella, former president of Capybara Games, had joined the company as an executive. In 2017, Annapurna announced that it would begin publishing more games, which included The Artful Escape, Ashen, and Telling Lies. Some of the first games published by the company included Gorogoa, What Remains of Edith Finch, Wattam, and Florence. On the day of establishment, the company announced several publishing deals it had signed with several independent developers. The company aimed to publish games that are 'personal, emotional, and original'. Jenova Chen also served as the company's advisor.

The company's early staff was composed of existing Annapurna executives, producer Neale Hemrajani and Technology Head James Masi along with several video game veterans, including Nathan Gary, Deborah Mars, Hector Sanchez, and Jeff Legaspi, who had worked in Sony Interactive Entertainment and Warner Bros. The company was founded as a division of Annapurna Pictures on Decemas Annapurna's attempt to expand into the video game industry. Notable games released by the company include Donut County, Kentucky Route Zero, Outer Wilds, Sayonara Wild Hearts, Wattam, What Remains of Edith Finch, Telling Lies, Neon White and Stray. The company is a division of Annapurna Pictures, and was founded in 2016. Annapurna Games, LLC ( trade name: Annapurna Interactive) is an American video game publisher.

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