Unknown Worlds founding members allege Krafton engaged in prolonged efforts to postpone the release of Subnautica 2, avoiding a $250M earnout payment obligation.
In a shocking turn of events, the ousted founders of Subnautica developer Unknown Worlds have filed a lawsuit against publisher Krafton, alleging a deliberate campaign to sabotage the game's development to avoid a $250 million earnout stipulated in their purchase agreement [1][2].
Key details of the lawsuit include:
- Krafton is accused of delaying the early access release of Subnautica 2, originally targeted for 2025, with CEO Changhan Kim reportedly telling Unknown Worlds leadership that such a release "would have been disastrous" because it risked triggering the $250 million earnout payout to the studio’s former owners and employees [1].
- The lawsuit accuses Krafton of a months-long campaign to interfere with the game's development, including firing the studio heads—Subnautica designer/director Charlie Cleveland, CEO Ted Gill, and co-founder Max McGuire—and then taking control of the company. Krafton justified the firings by claiming the leadership was responsible for delays and development struggles, stating leadership replacement would “bring renewed energy and momentum” [1][3].
- The founders claim that Krafton breached the purchase agreement, which allowed them to maintain operational control over major studio decisions, such as product roadmap, launch plans, budgeting, and staffing, as long as at least one of them remained employed. They are seeking court orders to: - Pay the full $250 million earnout - Reinstate the founders’ jobs and board seats - Award other damages related to the breach and sabotage [2].
- The lawsuit also details Krafton’s alleged attempts to harm Unknown Worlds’ relationship with its fan community by posting apologetic statements about the delays and casting blame on the fired executives, which negatively impacted public opinion and community support [2].
- Meanwhile, Krafton reportedly plans to extend the schedule for a smaller $25 million employee bonus tied to revenue goals and to advance some profit-sharing payments to employees, separate from the $250 million earnout dispute [2].
- Former executives expressed their reluctance to sue a large company but felt compelled to seek justice after Krafton fired them and delayed the project [3].
In summary, the lawsuit centers on Krafton allegedly intentionally sabotaging Subnautica 2’s development and delaying its release to avoid a $250 million earnout payment, firing its founding leaders in the process, and breaching contractual agreements that guaranteed the founders operational control [1][2][3][4]. The founders seek financial compensation, reinstatement, and accountability from Krafton.
Notably, Charlie Cleveland, the designer and director of Subnautica, posted a message on Reddit, stating that they are doing everything they can to make things right for everyone and that openness and transparency is their thing [5]. Krafton seized control of unknownworlds.com and subnautica.com without consulting the founders [6]. Subnautica 2 has received nearly 2.5 million wishlists on Steam and has positive responses to playtests [7]. The lawsuit claims that Krafton CEO Changhan Kim stated that an early access release within the planned 2025 window would have been disastrous for the company [1]. Krafton posted a statement on the seized websites, apologizing for the delay in Subnautica 2 and making allegations against Charlie Cleveland and Max McGuire [8]. Krafton looks forward to defending themselves in court, according to their spokesperson [9].
[1] PC Gamer (2023). Unknown Worlds founders sue Krafton over Subnautica 2's alleged sabotage. [online] Available at: [Accessed 12 May 2023]. [2] GamesIndustry.biz (2023). Unknown Worlds founders sue Krafton over Subnautica 2's alleged sabotage. [online] Available at:
- The lawsuit surrounding Subnautica 2's development reveals a dispute over a $250 million earnout payout, as Krafton allegedly delayed the game's release to avoid this payment.
- Krafton's actions, detailed in the lawsuit, include firing the studio's leaders, taking control of Unknown Worlds, and attempting to damage their relationship with fans.
- The founders of Unknown Worlds seek financial compensation, reinstatement, and accountability from Krafton, claiming breach of contractual agreements.
- In pop-culture circles, this legal drama between the Subnautica developer and its publisher sparks intense interest among fans, celebrities, and social-media enthusiasts.
- Amidst the turmoil, discussions about sci-fi and fantasy games, books, movies, and television shows offer a refreshing escape for people looking for entertainment distractions.
- A win for the founders could potentially set an important precedent for the balance of power in game development, a significant aspect of the broader entertainment industry.
