Earlier this month, Krafton, the parent company of Unknown Worlds, reportedly dismissed the studio`s co-founders Charlie Cleveland and Max McGuire, along with former CEO Ted Gill. This occurred shortly before the release date of Subnautica 2 was pushed to 2026. The subsequent dispute between the former leadership and Krafton has escalated into a lawsuit. Cleveland has now revealed the details of this lawsuit, which alleges that Krafton systematically attempted to withhold a promised $250 million payout from Unknown Worlds over several years.
The lawsuit, made public online, accuses Krafton of actively trying to sabotage the early-access release of Subnautica 2 by refusing to perform pre-launch activities they had previously agreed upon. It also highlights that the 2021 buyout agreement included a clause preventing Krafton from terminating the studio`s leadership without just cause.
It was previously reported that Krafton was obligated to pay Unknown Worlds $250 million if the company achieved specific financial targets by 2025. The lawsuit contends that Krafton`s decision to remove Unknown Worlds` leadership was made solely to prevent any release of Subnautica 2 in 2025, thereby making it nearly impossible to meet the financial benchmarks required to trigger the $250 million payout. The lawsuit further demands that Krafton be compelled to pay the agreed-upon sum and restore creative control of Subnautica 2 to the former leaders of Unknown Worlds.
In response to the lawsuit, 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 neglecting their responsibilities concerning Subnautica 2. A recently leaked document regarding Subnautica 2`s development appears to support Krafton`s assertion that the game did not meet the thresholds necessary for an early-access launch. Nevertheless, the legal battles in this case may continue for years before a resolution is reached.
Subnautica 2 is anticipated to be released on PC and Xbox Series X|S in 2026.