Krafton contests Unknown Worlds' lawsuit, claiming Subnautica 2 posed a threat of substantial damage to the entire franchise, similar to the potential harm Kerbal Space Program 2 could have inflicted.
The ongoing legal battle between Krafton and the former leadership of Unknown Worlds, the studio behind the popular Subnautica series, has escalated into a series of lawsuits.
Background and Dispute
In 2021, Krafton acquired Unknown Worlds with a significant financial investment, including a potential payout of up to $250 million if the studio met certain performance targets with Subnautica 2. However, by July 2023, the absence of Charlie Cleveland, Max McGuire, and Ted Gill at Unknown Worlds began to impact the development team, and the relationship soured. Krafton fired the top leadership on July 2, 2025.
Claims and Counterclaims
The former leadership filed a lawsuit against Krafton, accusing the company of intentionally delaying Subnautica 2 to avoid paying bonuses they were eligible for if the game met certain revenue targets by June 2026. Krafton denied these allegations, stating that the game was not ready for release, and that the former leaders had let their focus wander after receiving large payouts. They claimed that an early release could have caused "irreversible harm" to the franchise.
New Developments and Counter-Suit
Unknown Worlds itself filed a lawsuit against its former leaders, alleging that they downloaded over 170,000 confidential company files before their departure. This lawsuit was filed after Krafton's response to the original suit.
Subnautica 2 Development Status
Despite these disputes, Subnautica 2 is planned for release in 2026, possibly through early access.
The situation remains complex, with both sides locked in legal battles over the handling of Subnautica 2's development and the fate of Unknown Worlds' leadership. The dispute may not be heard about until it's over, as the lawyers work on hammering out an agreement.
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Coverage and Analysis
Andy Chalk, a writer at PC Gamer, has been writing about videogame news since 2007 and covers all aspects of the industry. His work includes new game announcements, patch notes, legal disputes, Twitch beefs, esports, and articles about Henry Cavill.
The former Unknown Worlds bosses accuse Krafton of delaying Subnautica 2 in order to avoid the payout, which is contingent on the former heads leading the successful development of Subnautica 2 and other games and hitting an ambitious revenue target in four consecutive quarters before June 2026. Krafton is requesting an outright dismissal of the lawsuit and all claims for relief, along with legal fees and other costs. The lawsuit accuses the former heads of Unknown Worlds of abandoning their responsibilities following Krafton's acquisition.
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