Update 17/07/2025: After the release of our initial article, KRAFTON shared remarks with Wccftech asserting that Subnautica 2’s delay aimed to guarantee it becomes “a top-tier experience meeting fan expectations.” The publisher emphasized the current build lacked necessary depth, stating, “Launching an unfinished product that fails to meet sequel standards would alienate our community—our top priority—and harm both the Subnautica and Unknown Worlds legacies.” KRAFTON also indicated readiness to contest the allegations legally.

Original Report:

Tensions between KRAFTON and Unknown Worlds have intensified following public access to the unsealed lawsuit. Filed by studio co-founders Charlie Cleveland, Max McGuire, and Ted Gill, the document outlines alleged contract violations tied to Subnautica 2’s postponed launch.

For context, KRAFTON acquired Unknown Worlds in 2021 for $500 million, with a potential $250 million bonus if revenue goals were achieved by late 2025. The founders claim this payout, intended for them and 40 staffers, led to friction when an early access 2025 launch appeared likely to trigger the bonus. The suit alleges KRAFTON CEO Changhan Kim expressed concern that meeting these targets could cause financial strain and reputational damage for the publisher. KRAFTON disputes this, citing translation errors during discussions.

“KRAFTON systematically attempted to disrupt development timelines,” the filing states, accusing the publisher of withholding marketing support, canceling collaborations, and neglecting pre-release obligations. Developers reportedly compensated by handling these tasks internally. After sustained opposition, the founders were dismissed on July 2, with KRAFTON announcing a 2026 delay—a move plaintiffs link to avoiding bonus payouts.

The lawsuit counters KRAFTON’s justification for terminations, including claims that the founders prioritized a Subnautica film project. According to the filing, this project was initiated at KRAFTON’s request. It also challenges critiques of Subnautica 2’s readiness, labeling the publisher’s quality assessments as flawed due to reliance on non-specialist evaluators. Internal playtest data, the founders argue, actually supported an early access release.

Additionally, the co-founders allege KRAFTON commandeered Unknown Worlds’ website to post the delay announcement without consulting studio staff. The complaint concludes: “KRAFTON has violated every core tenet of its acquisition agreement—abandoning operational autonomy pledges, ignoring consultation protocols, prioritizing profit over contractual obligations, and unjustly terminating leadership. By derailing Subnautica 2’s launch, they’ve betrayed both creators and players.”

KRAFTON is expected to formally respond to these allegations as the case progresses. Further updates will follow as developments emerge.