Key Takeaways
1. Former leaders of Unknown Worlds have filed a lawsuit against their publisher Krafton, alleging “sabotage” of Subnautica 2’s launch to avoid a $250 million payment.
2. The lawsuit claims Krafton violated their 2021 acquisition agreement by obstructing development and unjustly terminating the founders’ positions.
3. The founders assert that Krafton broke promises regarding creative control, consultation on decisions, and termination procedures.
4. Community reactions are mixed, with some fans supporting a boycott against Krafton for allegedly prioritizing profit over the game’s original creators.
5. The lawsuit seeks the full $250 million bonus, damages, and the reinstatement of the original leadership team.
The Subnautica 2 situation has taken a major twist in what’s being called one of the largest controversies in the gaming world this year. Former leaders of Unknown Worlds, including CEO Ted Gill, co-founder and creative director Charlie Cleveland, and co-founder and technical director Max McGuire, have filed a lawsuit against their publisher and parent company, Krafton. They claim that Krafton is “sabotaging” the early access launch of the game, which is scheduled for 2025, to avoid a hefty $250 million incentive payment.
Legal Action Filed
The lawsuit, consisting of 58 pages, was submitted to the Delaware Chancery Court on July 10, 2025. It accuses Krafton of violating their 2021 acquisition deal by obstructing the development of Subnautica 2 and unjustly terminating the three leaders. The document states:
“Krafton blatantly breached both the letter and spirit of the agreement to purchase Unknown Worlds.” According to the former leaders, Krafton failed to uphold its promise to let the founders maintain creative control and not dismiss them without valid reasons.
Breach of Promises
The lawsuit elaborates:
“It promised to keep creative and operational control with the Founders. Promise Broken. It promised to consult the Founders before making any moves that could jeopardize the earnout. Promise broken. It assured not to take any actions aimed at frustrating the earnout. Promise broken. And it promised not to terminate the Founders without Cause. Promise Broken.”
“Why? Because Krafton understood that allowing the Founders to release Subnautica 2 as intended would lead to massive commercial success, triggering the $250 million earnout. By letting go of the Founders and postponing the launch, Krafton can seize (what’s left of) the game’s success without paying the Unknown Worlds team anything from the earnout.”
Community Reactions
The conflict began to attract attention when Krafton announced on July 2, 2025, that it would replace the former leaders with Steve Paoutsis, the ex-CEO of Striking Distance Studios, claiming a need for “renewed energy and momentum.” Shortly after this, Krafton revealed that Subnautica 2’s release would be delayed, which the lawsuit alleges was a tactic to dodge the $250 million bonus payment.
The lawsuit is asking for the full $250 million bonus, damages, and the reinstatement of the previous leadership team. Reactions from the gaming community have been mixed, with some fans advocating for a boycott, accusing Krafton of “taking the game from its creators for the sake of profit.”
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