Krafton Responds to Lawsuit from Former Subnautica 2 Leads

Krafton has responded to a lawsuit filed by the former leads of Subnautica 2, dismissing their claims and accusing them of trying to secure an unwarranted payday. The lawsuit, filed by former Unknown Worlds CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire, centers around allegations that Krafton intentionally delayed Subnautica 2’s development to avoid paying a $250 million bonus that would have been triggered if the game had released on time and met sales targets. In response, Krafton denies these claims, asserting that Cleveland and McGuire abandoned their roles to pursue personal projects and that Gill’s focus shifted from game development to securing the bonus payment.

Krafton further contends that by 2023, the founders were increasingly detached from the game’s development, with Cleveland publicly stating he had shifted focus to filmmaking. Despite an internal assessment in March 2024 showing that the game’s progress had stalled and lacked new content, Krafton claims the leads refused to take responsibility. The company also alleges that Cleveland and McGuire attempted to release the game prematurely to trigger the bonus, despite concerns that it was not ready. Krafton’s response suggests that the leads’ decision to self-publish without the company’s involvement was an attempt to bypass Krafton and claim the bonus.

The dispute began in July when Krafton announced that it would replace Unknown Worlds’ leadership with former Striking Distance CEO Steve Papoutsis. Reports followed suggesting that the $250 million bonus might not be paid, raising questions about the motivations behind the firing of the leads. While Krafton insists that the game’s delay was due to its lack of readiness, leaked documents have since indicated that Unknown Worlds was receiving feedback suggesting the game was far from launch-ready. As the situation continues to unfold, the legal battle appears set to play out in court.