Earlier this month, Krafton, the parent company of game developer Unknown Worlds, reportedly ousted the studio`s co-founders Charlie Cleveland and Max McGuire, alongside former CEO Ted Gill. This move preceded the announcement that Subnautica 2 would be delayed until 2026. The ensuing disagreement between the former leadership team and Krafton has now escalated into a legal battle. Cleveland has since disclosed the full particulars of the lawsuit, which alleges a multi-year strategy by Krafton to withhold a promised $250 million payment from Unknown Worlds.
The lawsuit, now accessible online, accuses Krafton of actively attempting to undermine the early-access launch of Subnautica 2. It claims Krafton refused to carry out crucial pre-launch activities that had been previously agreed upon. Furthermore, the suit points to a clause in the 2021 buyout agreement which stipulated that Krafton could not terminate Unknown Worlds’ leadership team without a valid reason.
According to initial reports from Bloomberg, Krafton was set to pay Unknown Worlds $250 million if the company achieved certain financial benchmarks by 2025. The lawsuit posits that Krafton`s decision to dismiss Unknown Worlds` leadership was a calculated maneuver to prevent Subnautica 2 from being released in any form in 2025. This, the suit argues, would effectively make it impossible for the financial targets, which would trigger the $250 million payout, to be met. The lawsuit seeks to compel Krafton to honor the previously agreed-upon amount and to reinstate creative control of Subnautica 2 to Unknown Worlds’ former leaders.
In response to the legal action, a Krafton spokesperson issued the following statement:
“Krafton`s decisions were made to ensure Subnautica 2 is the best possible game and lives up to fan expectations. Releasing the game prematurely with insufficient content, falling short of what fans expect in a sequel, would have both disappointed the players—who are at the heart of everything Krafton does—and damaged the reputations of both the Subnautica and Unknown Worlds brands. While we are disappointed that Charlie, Max, and Ted have filed a lawsuit seeking a huge payout, we look forward to defending ourselves in court. In the meantime, Krafton remains focused on what matters: delivering the best possible game as quickly as possible to Subnautica`s fans.”
Krafton had previously released a statement accusing Cleveland and the other former leaders of abandoning their responsibilities for Subnautica 2. Adding to the complexity, a leaked document about the game`s development emerged earlier this week, seemingly supporting Krafton`s assertion that the project had not met the necessary thresholds for an early-access release. Nevertheless, a resolution to this dispute may require years of court proceedings.
Subnautica 2 is currently projected for release on PC and Xbox Series X|S in 2026.