Krafton disputes Subnautica 2 lawsuit, accuses ex-leaders of pushing unfinished release
The former executives allege that Subnautica 2 was on track for an early access release in 2025, but that Krafton deliberately postponed the launch until 2026 to bypass the payout, which expires that year.
Krafton denies this, stating the three 'lost interest' in development after the studio's $500 million acquisition in 2021, with Cleveland and McGuire each receiving around $200 million and Gill $60 million.
The company alleges that Cleveland and McGuire left their creative roles to focus on personal projects, while Gill sought to maximise the earnout rather than prioritise the game's quality.
According to Krafton, internal reports suggested the game was far from ready, with early access milestones reaching only about 12% of the intended final scope.
The publisher claims the former leaders were 'willing to gamble' with an unfinished release to secure their payout and also downloaded large amounts of confidential company data in violation of the acquisition agreement.
Krafton argues it acted to protect the Subnautica franchise's long-term reputation, referencing past examples of rushed game releases damaging brand goodwill.
The company terminated the three executives, citing 'cause' under their contracts and the equity purchase agreement.
Subnautica 2 is still scheduled for early access in 2026, but the legal dispute continues, with both parties maintaining conflicting accounts of the game's development and delay.
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South Korean publisher Krafton has filed its formal response to a lawsuit from former Unknown Worlds leaders Charlie Cleveland, Max McGuire, and Ted Gill, disputing claims it delayed Subnautica 2 to avoid paying a $250 million earnout. The former executives allege that Subnautica 2 was on track for an early access release in 2025, but that Krafton deliberately postponed the launch until 2026 to bypass the payout, which expires that year. Krafton denies this, stating the three 'lost interest' in development after the studio's $500 million acquisition in 2021, with Cleveland and McGuire each receiving around $200 million and Gill $60 million. The company alleges that Cleveland and McGuire left their creative roles to focus on personal projects, while Gill sought to maximise the earnout rather than prioritise the game's quality. According to Krafton, internal reports suggested the game was far from ready, with early access milestones reaching only about 12% of the intended final scope. The publisher claims the former leaders were 'willing to gamble' with an unfinished release to secure their payout and also downloaded large amounts of confidential company data in violation of the acquisition agreement. Krafton argues it acted to protect the Subnautica franchise's long-term reputation, referencing past examples of rushed game releases damaging brand goodwill. The company terminated the three executives, citing 'cause' under their contracts and the equity purchase agreement. Subnautica 2 is still scheduled for early access in 2026, but the legal dispute continues, with both parties maintaining conflicting accounts of the game's development and delay.
