Krafton Acquires Eleventh Hour Games, Eyes AI-First Strategy

14 Nov 2025

Krafton has announced a shift towards becoming an "AI-first company", committing over 130 billion won ($88 million) to this initiative. This move includes a significant reshaping of its employment strategy, halting new hiring and impacting current staff in South Korea. In a strategic expansion, Krafton acquired Eleventh Hour Games, known for the popular game Last Epoch.

Acquisition Details

Judd Cobler, founder of Eleventh Hour Games, addressed fan concerns regarding the acquisition. He explained that the studio needed funding to avoid bankruptcy and had limited options. Joining Krafton ensures long-term sustainability and competitive growth for the studio. Despite the reassurances, questions remain about potential changes to Last Epoch's business model, especially after the announcement of its first expansion, Orobyss.

Shifts in Strategy

The acquisition and emphasis on AI have sparked discussions about Krafton's future direction and its implications on game development. This shift comes amid tensions following the dismissal of the founders of Unknown Worlds, another Krafton-owned developer, who claimed their firing was to avoid a $250 million earnout.

Concerns and Prospects

While there's no direct evidence that Last Epoch's development is adversely affected, industry observers are wary of Krafton's evolving leadership style, its AI-first ambition, and how these might influence current and future projects. Krafton's efforts suggest a major transformation aimed at leveraging AI while navigating substantial headwinds across its developer network.

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