Executives and Publisher Face Off in Lawsuit
The development of Subnautica 2 has not been without drama. Krafton, publisher of PUBG: Battlegrounds, InZoi, and others, is being sued by former executives from development studio Unknown Worlds. Co-founders Charlie Cleveland, Max McGuire, and former CEO Ted Gill allege Krafton delayed an early access release of the sequel to avoid a promised payout to Unknown. If the studio hit revenue targets established after Krafton’s 2021 purchase, Unknown might have received up to $250 million in bonuses.
The plaintiffs claim that Subnautica 2 was ready for an early access release in 2025, allowing the studio to hit their payout goals. At some point Gill petitioned that employees who joined Unknown after the acquisition should be eligible for bonuses as well. Supposedly after this, Krafton began to push for delays, claiming Subnautica 2 was not ready for early access. Ex-Unknown staff even claim Krafton neglected to promote the game, missing out on valuable marketing opportunities.
Krafton’s Counter
But Krafton argues otherwise. In a legal document filed August 12th, the publisher gave a different account of the story. Krafton stated that Cleveland and McGuire had abandoned their duties as directors in order to pursue other projects. They even say the duo “quit making games for Unknown Worlds entirely.” They also accuse CEO Gill of being more focused on maximizing payouts to the studio rather than game development. The document says that progress on the sequel had slowed to a crawl, and in 2025 a lead developer joked the game would be in production for thirty years.
Krafton says any delays imposed upon the release date were in the interests of protecting both its and Unknown’s reputation. An early access with barely any of the game built would have soured Subnautica 2 in the eyes of critics and customers alike. Tensions continued to rise during development, and Krafton even accuses the plaintiffs of downloading confidential information, possibly with the intent of releasing Subnautica 2 without the publisher. The trio of executives were fired from Unknown in July this year, with their lawsuit made public shortly after.
What’s Next?
Lawsuits are a slow process, so barring a pre-trial settlement, it may be a while before the next update. For Unknown Worlds, Krafton has promised a $25 million payout to compensate for the game’s delay. Subnautica 2 is slated for an early access release sometime in 2026. For more coverage, check back regularly with our Other Games section.
