Subnautica 2 Founders Sue Krafton Over $250 Million Bonus After Surprise Firing and Game Delay

Image Credit: Subnautica 2 by Unknown Worlds

The ongoing Subnautica 2 saga has entered a new chapter, and this time it's headed to court. After being suddenly ousted from their own studio, the original creators of Subnautica — Charlie Cleveland and Max McGuire — along with former CEO Ted Gill, are now suing publisher Krafton.

This all started just last week when Krafton, the Korean publisher behind PUBG, made headlines by abruptly replacing the entire top leadership at Unknown Worlds, the studio behind the Subnautica series. Industry veteran Steve Papoutsis, formerly of Striking Distance Studios, stepped in as the new CEO. The former leadership team, including studio founder Cleveland, co-founder McGuire, and Gill, were removed “effective immediately.”

At the time, Krafton said it was a move to help get Subnautica 2 over the finish line, but Cleveland didn’t exactly agree. In a statement, he called the decision “a shock,” and said it hurt to be pushed out of the studio he helped build. More importantly, he hinted that the game was actually ready for early access — something Krafton clearly disagreed with.

Then came the bombshell from Bloomberg’s Jason Schreier. According to his report, the early access launch of Subnautica 2 was officially delayed to 2026 — a decision reportedly made against the wishes of the outgoing leadership. And here’s where things get messy: that delay likely means Unknown Worlds won’t hit the revenue targets tied to a $250 million bonus that Krafton had promised if certain milestones were met by the end of 2025.

Schreier reported that the bonus was meant to be shared with the whole team — nearly 100 employees — and some long-time staff were expecting payouts in the hundreds of thousands or even millions. The delay puts all of that at risk.

Naturally, people started asking questions. In response to the Bloomberg report, Krafton told IGN that the decision to delay the game had “nothing to do with any contractual or financial considerations.” The publisher claimed the delay was based on playtest feedback and had been in discussion even before the leadership change.

But things didn’t stop there. Krafton followed up with a sharper statement accusing Cleveland and McGuire of abandoning their roles. The company claimed it had asked both to return as game director and technical director — and both declined. Krafton also alleged that after the disappointing reception of Moonbreaker, another title from Unknown Worlds, Cleveland focused on a personal film project instead of helping with Subnautica 2. As a result, they said, development became directionless, and the early access version lacked content.

Adding to the fire, Krafton said 90% of the $250 million earnout was actually allocated to just Cleveland, McGuire, and Gill — with the remaining 10% meant for the rest of the studio. That claim didn’t sit well with fans, or with Cleveland himself.

Shortly after, Cleveland announced that he, McGuire, and Gill are now suing Krafton. “None of this is what we wanted,” he wrote in a post to the Subnautica community. “Suing a multi-billion dollar company in a painful, public and possibly protracted way was certainly not on my bucket list. But this needs to be made right.”

Cleveland pushed back hard against Krafton’s claim that the former leaders were hoarding the bonus for themselves. “That is totally untrue,” he said. “We’ve always shared profits with the team — and we would’ve done the same with the earnout. They deserve it for all their incredible work trying to get this great game into your hands.”

The gaming community has been watching closely — and many fans aren’t happy. Some have already called for a boycott of Subnautica 2, accusing Krafton of prioritizing corporate interests over creative integrity. Others are more cautious, pointing out that both sides are making serious allegations, and the full story might not be clear until the legal process unfolds.

For now, Subnautica 2 is still scheduled for early access sometime in 2026, with no word yet on how the lawsuit could impact development.