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Krafton Accuses Former Subnautica 2 Executives of Lawsuit

3 min read 14.12.2025

The conflict over Subnautica 2 between Krafton and former Unknown Worlds leadership leads to a lawsuit over the game's delay.

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Subnautica 2 has become the center of a conflict between the management of Unknown Worlds and the publisher Krafton Games. The main cause of the tension was the promise of a $250 million payout to the studio for achieving certain financial targets by the end of 2025. However, changes in leadership and the game's release delay have jeopardized this payout. One of the founders of Unknown Worlds, who was dismissed, announced plans to file a lawsuit.

Krafton accuses former Subnautica 2 executives of filing a lawsuit

On July 9, Krafton announced that Steve Papoutsis, CEO of Striking Distance Studios, which is developing the game The Callisto Protocol, will lead Unknown Worlds, replacing Ted Hill, Charlie Cleveland, and Max McGuire. The following week, it was reported that early access to Subnautica 2 has been delayed until 2026. According to the studio, the game is in good shape, but internal testing revealed several areas needing improvement before launch. The delay contradicts the wishes of the former management and has serious financial implications.

The acquisition of Unknown Worlds by Krafton in 2021 was accompanied by a promise of a $250 million bonus to be distributed among about 100 studio employees. Some of them were expecting significant bonuses. The release delay may mean that these targets will not be met and bonuses will not be paid. Krafton stated that the delay is aimed at improving game quality, but later reported that about 90% of the bonus was reserved for three former executives who were supposed to be actively involved in the development of Subnautica 2. At the same time, the company accused them of effectively refusing to work on the game, assuring fair compensation for other employees.

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Charlie Cleveland, co-founder of Unknown Worlds and director of Subnautica, responded by filing a lawsuit. He denied claims that the former executives sought to keep all bonuses, emphasizing that they have always shared profits with the team and will continue to do so. Krafton thanked fans and explained that the leadership changes were necessary due to the former executives' refusal to participate in game development, which caused delays. The company supports the new development team and guarantees fair rewards for employees.

Fans remain in focus, and Krafton promises transparency and further development of the Subnautica universe. Charlie Cleveland noted that the early access delay is beyond their control and urged followers to stay tuned for updates, as the lawsuit will reveal all details of the case. He emphasized that for him, Subnautica is a lifelong passion, and he will not abandon it or the team working on the game.

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