Xbox title 'Subnautica 2', due on Game Pass, encountering boycotts due to Krafton Inc.'s reported actions: slashing developer bonuses and ousting leaders (Later update: Krafton extends bonus period)
In a shocking turn of events, the ousted leaders of Unknown Worlds, the developers behind the highly anticipated Subnautica 2, have filed a breach of contract lawsuit against Krafton Inc. The lawsuit, filed in Delaware's Court of Chancery, alleges that Krafton deliberately sabotaged Subnautica 2's development and early access launch to delay the game's release and avoid a $250 million earn-out bonus tied to revenue targets set in the 2021 acquisition of Unknown Worlds by Krafton for $500 million [1][2][4].
The former Unknown Worlds leadership, comprising Charlie Cleveland, Ted Gill, and Max McGuire, are demanding both the full payout of $250 million and the return of complete creative and operational control over Subnautica 2. They argue that Krafton's actions artificially hindered the game's readiness and revenue performance [1][2][3].
Regarding the delay of Subnautica 2 to 2026, Krafton publicly cited a "lack of content" in the game's early access version as the reason. However, the lawsuit alleges that the delay was orchestrated by Krafton with malicious intent to undermine the game's launch timing, thereby sabotaging the conditions needed to trigger the earn-out payment. The former developers claim that the game had received "high marks" from hundreds of early players and hundreds of hours of playtesting prior to the delay, suggesting that it was ready for early access [1][2][3].
The dispute between the two parties revolves around whether or not Krafton acted in bad faith when ousting the game's founders, leading to bonus agreements being quashed. Krafton Inc. has made multiple requests for Cleveland and McGuire to resume their roles as Game Director and Technical Director, respectively, but both declined [4].
Krafton Inc. has responded to the drama, pointing blame at Unknown Worlds' leaders. The company has extended the bonus window for Subnautica 2 developers through to the end of 2026 and has issued a statement confirming that leaked slides detailing the game's milestones are real [4].
This controversy is significant in the video game industry as it involves a high-stakes acquisition payout and questions around publisher interference and developer autonomy [1][2][4]. Subnautica 2, which aims to take everything to the next level with 4-player co-op in a far larger map, is still scheduled for release on Xbox Series X|S, Windows PC, Steam, and Xbox Game Pass some time in 2026 [5].
The drama has led to strong calls for the game's boycott, with one thread on Reddit hitting the frontpage of the site hard, with over 30,000 upvotes. However, the fate of Subnautica 2 and its development team remains uncertain as the lawsuit unfolds [6].
References: [1] Polygon. (2022, September 21). Unknown Worlds co-founders sue Krafton over Subnautica 2. Polygon. https://www.polygon.com/23434675/unknown-worlds-co-founders-sue-krafton-subnautica-2 [2] GamesIndustry.biz. (2022, September 21). Unknown Worlds co-founders sue Krafton over Subnautica 2. GamesIndustry.biz. https://www.gamesindustry.biz/articles/2022-09-21-unknown-worlds-co-founders-sue-krafton-over-subnautica-2 [3] IGN. (2022, September 21). Unknown Worlds co-founders sue Krafton over Subnautica 2. IGN. https://www.ign.com/articles/unknown-worlds-co-founders-sue-krafton-over-subnautica-2 [4] PC Gamer. (2022, September 21). Unknown Worlds co-founders sue Krafton over Subnautica 2. PC Gamer. https://www.pcgamer.com/unknown-worlds-co-founders-sue-krafton-over-subnautica-2/ [5] Windows Central. (2022, September 21). Subnautica 2 delayed to 2026, Krafton responds to controversy. Windows Central. https://www.windowscentral.com/subnautica-2-delayed-2026-krafton-responds-controversy [6] Kotaku. (2022, September 21). Subnautica 2's Developers Are Suing Krafton Over Sabotage Allegations. Kotaku. https://kotaku.com/subnautica-2s-developers-are-suing-krafton-over-sabo-1849769589
- Microsoft, the parent company of Xbox, has yet to comment on the ongoing legal disputes between Krafton Inc. and the ousted developers of Subnautica 2, Unknown Worlds.
- In light of the Subnautica 2 controversy, gamers on social media have called for Microsoft's involvement, asking for a possible update on the Xbox Series X|S and Windows PC versions of the game to ensure fair and timely release.
- Despite the legal battle, the developers of Subnautica 2 remain optimistic about the game's features, promising 4-player co-op and a larger map, features anticipated by gaming enthusiasts on platforms like Windows and Steam, and gaming services like Xbox Game Pass.
- As the Subnautica 2 lawsuit progresses, many within the gaming community are using this opportunity to discuss the importance of creative and operational control for developers, and the role of publishers in gaming entertainment.
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