KRAFTON Acquires Eleventh Hour Games, Makers of Last Epoch, Amidst Multi-million Dollar Lawsuit

KRAFTON, the South Korean publisher best known for PUBG and its portfolio of global game studios, has acquired Eleventh Hour Games, the developer behind the successful action RPG Last Epoch. The move comes even as the company faces an escalating legal battle with the original leadership of Unknown Worlds Entertainment, developers of Subnautica 2.

The acquisition marks a strategic expansion of KRAFTON’s footprint in the action RPG space. At the same time, it draws attention to mounting internal tensions within its existing studio structure, where former Subnautica leads have filed suit over broken promises and alleged sabotage.

“Joining KRAFTON is a dream come true for Eleventh Hour Games,” said Judd Cobler, CEO of Eleventh Hour Games. “Their deep-rooted passion for ARPGs aligns perfectly with our mission. With KRAFTON’s support, EHG is poised to elevate the Last Epoch franchise to even greater heights. As a studio built from players of the genre, we couldn’t be more excited for its future.”

Eleventh Hour Games Joins KRAFTON in Strategic $96 Million Acquisition

KRAFTON has acquired 100% of Eleventh Hour Games’ shares in a deal that includes an initial payment of $96 million. The Oregon-based studio launched Last Epoch in 2024, and it has since sold over 3 million copies worldwide. The game is widely recognized for its strong player engagement, deep character customization, and modern take on genre fundamentals. Eleventh Hour Games was founded in 2018 by action RPG fans who met through Reddit. Since its inception, the studio has grown from a grassroots collective to a global name in the ARPG market.

According to KRAFTON, the acquisition will enable Eleventh Hour Games to scale its content pipeline, expand onto console platforms, and grow its live service operations while maintaining creative autonomy.

“We are thrilled to welcome Eleventh Hour Games into the KRAFTON family,” said Maria Park, Head of Corporate Development at KRAFTON. “The team’s commitment to the ARPG community and innovative approach to game development resonated strongly with our values. We will always stand behind developers who put players first.”

“Their rise from a grassroots studio to a globally renowned ARPG developer is nothing short of remarkable. We believe this acquisition lays the groundwork for diversifying KRAFTON’s genre portfolio and expanding distinctive franchise IPs. This acquisition also reaffirms our unwavering passion for great games and the teams that build them.” 

The publisher says the deal reinforces its commitment to supporting independent developers with the tools, infrastructure, and international publishing expertise needed to thrive. KRAFTON plans to support the Last Epoch franchise for the long term.

Legal Conflict Erupts Between KRAFTON And Subnautica 2 Creators

While celebrating the addition of a new developer to its ranks, KRAFTON is simultaneously navigating an unfolding lawsuit from former leaders at Unknown Worlds, the studio behind Subnautica and its upcoming sequel. The dispute centers on the early access delay of Subnautica 2 and claims of contractual breaches linked to a $250 million earn-out bonus.

The publisher alleges that three former executives – Game Director Charlie Cleveland, Technical Director Max McGuire, and CEO Ted Gill – walked away from the project following the commercial failure of Moonbreaker. According to KRAFTON, this exodus caused major disruption and content shortfalls in the early access version of Subnautica 2.

KRAFTON says the leadership trio failed to uphold their responsibilities and refused to return when asked. It further claims their exit delayed the game and denied developers clarity during a critical phase of production. The publisher has pledged continued support to the remaining team members and insists the game is still progressing.

Former Subnautica Leads Deny Wrongdoing And Confirm Legal Action

Charlie Cleveland has publicly pushed back on KRAFTON’s allegations, calling them inaccurate and harmful. In a detailed response posted to the Subnautica subreddit, he confirmed that he, McGuire, and Gill have filed a lawsuit against the publisher. He said the decision was deeply personal and rooted in a desire to defend their team and legacy.

Cleveland insists that the game was ready for early access but that control over launch decisions was taken away. He denies any intent to abandon the project and describes the situation as painful and surreal. According to him, the original earn-out agreement promised fair compensation to the team – a commitment he says they still intend to honor.

He also rejected KRAFTON’s portrayal of the earn-out as being mishandled or selfishly hoarded. He stated that sharing bonuses with the wider team has always been a core principle and would remain so despite the legal dispute.

Subnautica 2 Continues Development Amid Ongoing Litigation

Despite the legal battle, Subnautica 2 remains in development with a global remote team. The game introduces online cooperative multiplayer for the first time in the series and features an all-new underwater planet filled with evolving ecosystems, craftable tools, and deep-sea exploration.

Early access was initially targeted for 2024 but has been indefinitely delayed. KRAFTON cites content readiness as the primary reason for the postponement, while former leadership claims the game was on schedule until interference occurred.

Both parties have appealed to fans for support. KRAFTON has emphasized its investment in the development team and stated that it is committed to seeing the game through. Cleveland has thanked the community for their continued encouragement and said the team’s passion remains unwavering.

KRAFTON Expands Its Portfolio While Defending Its Practices

KRAFTON’s acquisition of Eleventh Hour Games follows a broader strategy to diversify its genre offerings and secure new intellectual property. According to Maria Park, Head of Corporate Development at KRAFTON, the deal reflects a shared passion for action RPGs and a commitment to supporting developers who put players first.

At the same time, the company is defending its actions in the Subnautica dispute. It claims its decisions have been made in the best interest of players and development outcomes. With the lawsuit now public, both KRAFTON and the former Unknown Worlds leaders appear poised for a protracted legal battle.

The publisher’s ability to grow its studio network while managing internal challenges will likely shape its reputation and output in the years ahead. As one courtroom drama unfolds, another franchise prepares for expansion – a narrative that highlights both the ambition and volatility of modern game publishing.