Krafton announced a major company-wide move toward being an AI-first business earlier this year and the reaction in the industry and among players has been sharp. The timing was awkward for smaller studios recently folded into the publisher, including Eleventh Hour Games, the developer of Last Epoch, which joined Krafton in July.
Eleventh Hour’s founder pushed back on the idea that the acquisition spells trouble for the studio. He framed the sale as a practical choice, listing the alternatives the team faced before the deal closed. He said they could pivot to working on someone else’s intellectual property, take funding from a partner that would stifle their vision, go bankrupt, or join Krafton. He described joining Krafton as the best way to keep Last Epoch alive and growing.
That argument matters. Krafton is committing a large sum to its AI strategy and paused new hires while launching a voluntary resignation program in South Korea, moves that have set off alarm among creators. The Unkown Worlds leadership shakeup and questions around a $250 million earnout added fuel to the conversation. At the same time the Last Epoch boss said he does not see the current coverage as foretelling the end of small studios under Krafton.
Industry context is useful. Krafton is still listed as backing Subnautica 2 development even after layoffs at Unknown Worlds. For readers wanting more background on that situation the site has a piece documenting Krafton confirming Subnautica 2 development continues despite Unknown Worlds layoffs Krafton confirms Subnautica 2 development continues despite Unknown Worlds layoffs.
What this means for Last Epoch depends on how Krafton manages its AI push and whether it keeps Eleventh Hour on the path the studio carved out for the game. The founder s statement makes clear the acquisition was a survival decision as much as a growth bet. That alone makes this more practical than apocalyptic for the studio.
Games and developers will be watching as Krafton reallocates resources and defines what AI-first looks like across its portfolio. Publishers have changed focus before. The industry will get a clearer read from the company s next moves and the contracts that bind acquired teams.
Join the conversation and follow the site on X, Bluesky, and YouTube.
