Unknown Worlds Accuses Krafton of Delaying Subnautica 2 Release

In a controversial lawsuit, the co-founders of Unknown Worlds, the studio behind the highly anticipated game Subnautica 2, have accused their parent company, Krafton, of deliberately delaying the game's release to avoid a substantial financial payout. According to the lawsuit, filed by Charlie Cleveland, Max McGuire, and Ted Gill, Krafton has engaged in actions that constitute 'flagrant contractual breaches' to postpone the game's launch, which they argue is ready for early access in 2025.

The lawsuit alleges that Krafton, a South Korean publisher, is motivated by a desire to avoid paying a $250 million earnout linked to the game’s success. The co-founders assert that the game is the 'second most anticipated PC title in the world,' with 2.5 million wishlists on Steam, and that it had received positive feedback during extensive pre-release testing. However, Krafton contends that Subnautica 2 'falls short in terms of content volume' and requires more development time.

Krafton purchased Unknown Worlds in 2021 for an estimated $500 million, and tensions have reportedly escalated since then, culminating in the ousting of the studio's founders. The lawsuit claims that following their dismissal, Krafton attempted to suppress marketing efforts and reneged on commitments essential for the game's pre-launch phase. Cleveland and his team argue that their leadership was unjustly terminated amid these pressures, which they believe was an 'extraordinary moment of corporate greed.'

Additionally, the lawsuit highlights the disconnect between the studio's creative direction and Krafton's corporate objectives. Cleveland was allegedly redirected to focus on a potential film adaptation of Subnautica, which led to accusations that he neglected his duties as CEO. In response, Cleveland, McGuire, and Gill maintain that they remained actively involved in the game's development.

The implications of this legal battle extend beyond the studio's immediate future; they raise significant questions about corporate governance in the gaming industry and the balance of power between publishers and developers. The co-founders are seeking a judgment that would enforce the earnout agreement and provide further damages as proven at trial.

As the situation develops, it underscores the ongoing challenges within the video game industry, particularly regarding financial pressures and creative integrity. The outcome of this lawsuit could have far-reaching effects on how similar disputes are handled in the future, as both sides prepare for a potentially protracted legal battle.