Courtroom Chaos: Every Major Gaming Lawsuit That Made Headlines in 2025
- Sagar Mankar
- 2 hours ago
- 11 min read
The gaming industry wrapped up 2025 dealing with more courtroom drama than boss battles, as lawsuits ranging from intellectual property disputes to child safety concerns dominated headlines throughout the year.
For anyone keeping score, 2025 saw Sony battling Tencent over what many called a blatant Horizon clone, Krafton getting sued by the very founders it acquired for half a billion dollars, Roblox facing mountains of litigation over child safety and addiction, Nintendo flexing its legal muscles against accessory makers and patent infringers, and Bungie dealing with explosive wrongful termination allegations.
Beyond these headline grabbers, smaller but significant cases involving Rockstar's alleged union busting, Blizzard's crackdown on private servers, and various copyright disputes kept gaming lawyers busier than a speedrunner on world record pace.
Table of Contents:
Sony Takes on Tencent Over Horizon Copycat Claims
Sony Interactive Entertainment kicked off one of the year's biggest IP battles when it sued Tencent Holdings in July over Light of Motiram, a PC game that critics immediately dubbed "Horizon Zero Originality" after its late 2024 announcement.
The lawsuit filed in U.S. District Court for the Northern District of California alleged that Tencent's Polaris Quest studio created what Sony called a "slavish clone" of the Horizon series, copying everything from the red-haired female protagonist in tribal-futuristic gear to the robotic beast enemies and post-apocalyptic world setting.
According to the lawsuit, in early 2024, Tencent's Aurora Studios pitched Sony on a Horizon mobile spin-off with similar mechanics, but Sony rejected the proposal twice. Sony suspected that Polaris Quest was essentially a rebranded or affiliated Tencent studio that decided to create Light of Motiram anyway after getting turned down.
When Light of Motiram hit Steam and Epic Games Store pages in November 2024, the similarities were impossible to ignore, with promotional materials showing gameplay involving crafting, base-building, gliding, and co-op hunting of mechanical behemoths that looked suspiciously familiar to Horizon fans.
Sony raised intellectual property concerns earlier in 2025, and Tencent reportedly offered another licensing deal, which Sony refused while demanding the game be withdrawn entirely. When that didn't happen, Sony filed its lawsuit on July 28, seeking damages and an injunction to block the game's release.
Tencent responded by updating the Steam page to swap out screenshots and cover art in late July, then filed a motion to dismiss in September and October, arguing the game only used "well-trodden tropes" and pointing out that Sony itself had faced concerns about Horizon's similarities to Enslaved: Odyssey to the West.
The case never made it to trial though. By early December, Tencent agreed to halt all promotion and public testing ahead of a planned 2026 hearing. On December 17, both parties filed for a confidential settlement and the case was dismissed with prejudice, meaning neither side can refile.
The terms remained completely under wraps with no admission of wrongdoing and no public financial details, though both parties stated satisfaction with the "confidential resolution" and declined further comment.
The aftermath was swift and decisive. Light of Motiram disappeared from Steam and Epic, with store pages redirecting to 404 errors by December 18.
Tencent scrubbed all promotional materials and halted marketing and testing. Whether the game will eventually relaunch with major changes or stay dead remains anyone's guess, but for now, the project appears completely shelved.
Unknown Worlds Founders Battle Krafton Over Subnautica 2 Earnout
The Subnautica franchise became the center of an ugly corporate divorce in 2025 when Unknown Worlds Entertainment co-founders Charlie Cleveland and Max McGuire, along with former CEO Ted Gill, sued parent company Krafton in Delaware Chancery Court. All three had left the company in early July, just before the lawsuit.
The dispute stemmed from Krafton's 2021 acquisition of Unknown Worlds for a whopping $500 million upfront plus a $250 million earnout tied to Subnautica 2 hitting 2025 Early Access revenue targets.
The founders alleged that Krafton deliberately sabotaged development to avoid paying the earnout by withdrawing marketing support, vendors, localization services, servers, and legal assistance, forcing a delay past 2025.
Krafton fired back hard, countering that the leaders essentially abandoned their duties after the acquisition. They claimed Cleveland was off working on a film project, that the founders deceived the company about their involvement in Subnautica 2, and that they pushed for a rushed launch that would risk harming the franchise similar to what happened with Kerbal Space Program 2.
To make matters messier, Unknown Worlds as a Krafton subsidiary sued the founders separately for allegedly stealing files and emails, with over 72,000 downloads claimed, and breaching non-disclosure agreements.
As of late December, the case remained ongoing with no verdict or settlement. A post-trial argument was scheduled for January 9, 2026, with Vice Chancellor Lori W. Will expected to rule afterward.
Meanwhile, Krafton emphasized its commitment to fan-first development with Subnautica 2 still in active production using Unreal Engine 5 for a 2026 Early Access release featuring multiplayer co-op survival.
Roblox Drowns in Lawsuits Over Child Safety and Addiction
If any company had a rougher year in court than Roblox, it's hard to imagine who. The platform faced an absolute deluge of litigation across multiple fronts, with over 100 addiction cases and approximately 80 child exploitation suits filed, plus state attorneys general piling on with enforcement actions.
No settlements or trials occurred yet, but the early pretrial phases including motions and discovery set the stage for what could become landmark gaming platform liability cases.
The child sexual exploitation and assault cases, consolidated as MDL No. 3166, involve roughly 80 lawsuits with at least 31 consolidated. These cases allege that Roblox knowingly enabled predators to groom minors through the platform's chat and games, with bad actors sharing explicit content and luring victims to off-platform abuse on services like Discord and Snapchat.
The claims center on allegations that Roblox knew about these risks but maintained inadequate controls and verification systems while falsely marketing itself as "safe for kids." Some plaintiffs are even challenging Section 230 immunity protections.
State attorneys general also jumped into the fray with enforcement actions under consumer protection laws. Kentucky sued on October 7 in Madison Circuit Court, calling Roblox a predator "playground" with links to child sexual abuse material and terrorism, alleging grooming led to real-world abuse and seeking injunctions and damages for consumer protection act violations and negligence.
Texas Attorney General Ken Paxton filed suit on November 7, referring to "pixel pedophiles" and alleging Roblox profits from explicit content while failing on safety.
Tennessee piled on December 18 in Davidson County Circuit Court, claiming deceptive safety marketing while predators groomed and extorted kids who could access virtual strip clubs, seeking app removal and reforms for consumer protection act violations.
Roblox denied liability for third-party actions while stating it prioritizes safety and has added age-estimation technology and chat limits. The cases started rolling in during early 2025 from families in California, Texas, and other states, with the JPML petition filed in September leading to the December consolidation order that stayed and transferred cases for coordinated discovery and arbitration motions.
On the addiction front, Roblox faced part of over 100 coordinated cases in Los Angeles Superior Court under Judicial Council Coordinated Proceeding No. 5363, which was established in April 2025. These lawsuits allege that Roblox intentionally designed addictive features including reward loops and Robux spending mechanics that exploit psychological vulnerabilities in kids and teens, causing mental health harms like anxiety, depression, and even suicide ideation. The claims draw explicit parallels to past tobacco and social media litigation, arguing Roblox knew about the risks but prioritized profits over safeguards.
Plaintiffs tried twice to create a federal Multidistrict Litigation for these cases but the Judicial Panel on Multidistrict Litigation denied both attempts, most recently on December 16, 2025, for proposed MDL-3168. The panel cited too many potential games (also include fortnite, COD, Minecraft, etc.), companies, and factual differences to make centralization practical, encouraging informal coordination among lawyers instead.
With all cases still ongoing and no verdicts or settlements, law firm estimates suggested potential payouts could range from $25,000 to over $350,000 per plaintiff depending on harm severity and documentation, though these were speculative figures with no actual payouts reported.
Nintendo Shuts Down Genki's Switch 2 Leak at CES
Nintendo proved once again that nobody messes with its intellectual property when it sued U.S. accessory maker Genki, operating as Human Things Inc., over highly accurate Nintendo Switch 2 mockups and accessories displayed at CES 2025 in January.
The lawsuit filed in U.S. District Court for the Central District of California alleged trademark infringement, unfair competition, and false advertising after Genki showcased 3D-printed mockups, renders, and compatible accessories, including the "Genki Glitch 2" case at its CES booth from January 7-10.
Nintendo argued that Genki falsely implied it had official access to the unreleased console and compatibility information, misleading consumers and damaging Nintendo's carefully orchestrated reveal plans. The mockups turned out to be eerily accurate when compared to the official design after Nintendo's eventual reveal, complete with docks, covers, and power banks that Genki labeled to promote pre-orders. Nintendo sought an injunction, damages, and destruction of all infringing goods.
Genki denied possessing any real hardware or documents, claiming the prototype was based entirely on "public rumors" and that it was just "building gear for gamers." The company doubled down with a "Genki Glitch 2" render posted on April 1, which probably didn't help its case. Nintendo filed the lawsuit on May 2, and Genki initially vowed to fight on May 5, insisting it had done nothing wrong.
The fight didn't last long though. By September 9, both parties reached a confidential settlement where a U.S. judge ordered Genki to pay undisclosed damages and issued a permanent injunction barring the company from using Nintendo marks, designs, or approximations forever. The case was dismissed with prejudice, meaning it can't be refiled, with each side paying its own legal fees and no admission of liability from Genki.
In the aftermath, Genki scrubbed all Switch 2 promotional materials and continues making accessories but now in full compliance with Nintendo guidelines.
Bungie Drama Explodes with Barrett Wrongful Termination Suit
Bungie hasn’t had the best luck in recent years. The latest controversy centers on longtime Bungie veteran Christopher "Chris" Barrett, who filed a lawsuit against Sony Interactive Entertainment and Bungie in Delaware Chancery Court, seeking over $200 million in damages for wrongful termination, breach of contract, and defamation.
Barrett, a 25-year Bungie veteran who worked on Halo campaigns, directed Destiny 2: Forsaken, and helmed the Marathon reboot, claimed his March 2024 firing was a "sham" designed to deny him $45 million in earnout payments from Sony's $3.6 billion Bungie acquisition.
Barrett received $35 million upfront from the acquisition deal but alleged Sony and Bungie scapegoated him amid business struggles, "cynically exploit[ing] the MeToo movement," according to his filing. He argued the internal investigation was pretextual and that he was being denied money he was contractually owed.
Sony and Bungie came back hard with a 128-page response filed in February 2025 that included what they called "disturbing" text messages between Barrett and female subordinates. The texts included messages like "Are you still in PJs?" and "Holy Grail" compliments, along with descriptions of hours-long FaceTime calls. The companies claimed Barrett was legitimately fired after an investigation into inappropriate conduct toward eight or more female subordinates, including flirty texts, late-night drunk calls, and boundary violations. They called the lawsuit a "baseless attempt to obtain hundreds of millions" Barrett wasn't entitled to receive.
Barrett countered that the texts were "cherry-picked" and that full context would clear him, but the damage to his public reputation was severe. The case filed on December 12, 2024, moved through discovery and responses until hitting a jurisdictional wall. On October 13, 2025, the court issued an order to show cause, noting that Delaware Chancery Court handles equitable matters but lacks subject matter jurisdiction over pure monetary damages claims like Barrett's.
By December 10 and 14, the court dismissed the case without prejudice, ruling that Chancery couldn't hear the monetary claims and that equitable relief like reinstatement was inadequate and "highly unlikely" given the circumstances. Barrett agreed to transfer the case to Delaware Superior Court while defendants wanted it to stay in Chancery, but as of late December, no refiling or transfer had been reported and the case appeared inactive.
Sony Battles PlayStation Store Pricing Lawsuits
Sony faced mounting legal pressure over PlayStation Store pricing practices throughout 2025, with class actions hitting the company from multiple directions. The most significant came from the Netherlands, where consumer advocacy group Stichting Massaschade & Consument filed a collective lawsuit on June 24, accusing Sony of exploiting its roughly 80% console market dominance to impose what plaintiffs called a "Sony tax" on digital purchases.
According to the Dutch lawsuit, digital games and downloadable content on the PlayStation Store averaged 47% more expensive than physical copies, allegedly resulting in approximately €435 million, equivalent to around $505 million, in overcharges affecting 1.7 million users since 2013. The suit demanded both compensation for affected consumers and platform openness to allow rival digital storefronts, challenging Sony's closed ecosystem model.
The Dutch case echoed ongoing litigation in the UK, where a massive £5 billion claim that started back in 2022 advanced significantly in May 2025, pursuing similar allegations about anticompetitive pricing practices. Meanwhile, in the United States, a proposed settlement offering $7.8 million in PlayStation Store credits got rejected in July after jugde slammed it as inadequate "coupons" that failed to properly compensate affected consumers.
As of December 30, all three cases remained active with no resolutions. The Dutch lawsuit awaits its first hearing early next year, potentially setting the stage for forced pricing reforms if successful.
Additional Notable Gaming Lawsuits
Beyond the major cases, 2025 saw numerous other legal battles worth noting. Bungie faced a second lawsuit from Louisiana sci-fi writer Matthew Martineau who claimed Destiny 2's Red War campaign and related content infringed on his unpublished WordPress stories from 2013-2014, alleging similarities in factions, characters, and plot elements. Despite Bungie's denials of copying and arguments about generic sci-fi tropes, the case settled confidentially in November after prolonged discovery, with terms sealed and no admission of liability.
Blizzard Entertainment sued Turtle WoW operators on August 29 over an unauthorized World of Warcraft private server, seeking injunctions and damages for copyright infringement. The case remained ongoing as of late December with discovery granted, RICO claims dismissed, motions to dismiss filed, and an initial conference set for February 2026, while Turtle WoW kept operating with community support.
Rockstar Games created a firestorm in late October by firing 30-40 UK and Canadian staff allegedly for sharing GTA 6 leaks via Discord, though the Independent Workers Union of Great Britain claimed it was actually union-busting retaliation. The IWGB filed claims on November 12 in a UK employment tribunal for victimization, unfair dismissal, and blacklisting, with Rockstar denying the union connection and insisting the firings were for policy breaches. The dispute drew government scrutiny with UK Prime Minister Keir Starmer announcing a probe in December, adding pressure as GTA 6's release approached.
In shorter-lived disputes, gamer Malachi Mickelonis's 2023 lawsuit against Aspyr Media over canceled KOTOR 2 DLC for Switch port settled confidentially in fall 2025 after revelations about Disney blocking the content and bizarre internal drama.
Square Enix sued BlackJack Studio in March over reused Front Mission assets in the game Mecharashi, settling confidentially by May, with the game continuing after revisions.
Ziff Davis (IGN) sued OpenAI and Microsoft in April over ChatGPT training data scraping, with the case transferred to a Southern District of New York MDL where it remained in pretrial discovery.
Nintendo scored a 15-year patent victory against Nacon in October, with a German court awarding roughly $8.2 million over Wii Remote controller infringement, though Nacon appealed.
Take-Two sued PlayerAuctions in March over GTA Online black market account sales, with the case surviving a motion to dismiss and proceeding to discovery.
The most closely watched ongoing case involved Nintendo and The Pokémon Company's September 2024 patent lawsuit against Pocketpair over Palworld's creature capture, combat summoning, and aiming mechanics. The case received major blows to Nintendo's position in late 2025 when Japan's patent office rejected Nintendo's capture patent on October 29 for lack of originality, and the USPTO ordered reexamination of the summoning patent on November 4, potentially weakening Nintendo's claims as Pocketpair planned a full Palworld release for 2026.
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