Krafton Fires Back in Subnautica 2 Legal Battle, Accuses Former Leads of Neglect and Self-Interest

Krafton and Subnautica 2 controversy

Krafton has formally responded to a lawsuit from the former leadership of Subnautica 2 developer Unknown Worlds, disputing allegations that it deliberately delayed the game to avoid a bonus payout.

The legal dispute first came to light last month when former Unknown Worlds co-founders Charlie Cleveland and Max McGuire, along with former CEO Ted Gill, accused Krafton of using "pressure tactics" to postpone the Early Access release of Subnautica 2. This delay, they claimed, was aimed at preventing them from reaching revenue milestones that would trigger the hefty $250 million payout. The lawsuit, filed through Fortis Advisors LLC, alleged that Krafton even removed them from their positions to ensure the targets wouldn’t be met.

In its latest filing, Krafton pushes back hard, framing the case as a matter of protecting the game’s quality and the franchise’s reputation. The publisher says the decision to delay the sequel’s Early Access debut was driven by concerns over the limited scope of content. According to court documents, the development lead reportedly noted that the planned December 2025 version would only deliver "about 12% of our intended 1.0 scope" — joking that at this pace, the project could take 30 years to complete.

Krafton also alleges that Cleveland and McGuire stepped away from their core roles as Game Director and Technical Director to pursue personal projects, while Gill focused on securing the earnout rather than guiding the game to a successful launch. Internal assessments in March 2024 reportedly showed that Subnautica 2 lacked substantial new content, leading to scope reductions and further delays.

The publisher says it asked the co-founders to return to lead development, but they refused. Krafton further claims the former leads even discussed self-publishing the game and downloaded "massive amounts of confidential information" before their departure. In its statement, the company accuses the trio of prioritizing their payout over the long-term health of the Subnautica IP, citing internal conversations where employees openly discussed strategies to secure the bonus despite delays.

For now, Subnautica 2’s release window remains uncertain. Krafton insists the delay is necessary to "safeguard the quality" of the game and maintain player trust, while the former leads maintain it’s a calculated move to deny them their contractual payout.