Unfinished Subnautica 2 game release controversy deepens as Krafton alleges ex-Unknown Worlds management illegally downloaded significant quantities of confidential data
The ongoing legal dispute between gaming publisher Krafton and the former leaders of Unknown Worlds, including founders Charlie Cleveland, Max McGuire, and CEO Ted Gill, has escalated over the development and release of Subnautica 2.
According to Krafton, Cleveland and McGuire left their positions as game director and technical director, respectively, to focus on personal projects. The publisher alleges that this move was an attempt to avoid a $250 million payout stipulated at the time of Krafton's acquisition of Unknown Worlds in 2021.
The plan was for the trio to retain operational control of Unknown Worlds post-acquisition and for Cleveland and McGuire to lead the development on the sequel. However, Krafton claims that the duo's alleged absences started impacting Subnautica 2's development by July 2023.
The former executives, on the other hand, allege that they were fired by Krafton. They have sued the publisher, accusing it of intentionally obstructing the development of Subnautica 2 and wrongfully delaying its release to avoid paying multimillion-dollar bonuses tied to the game’s earnout conditions.
Krafton has denied these allegations and accused the trio of abandoning their positions and focusing on personal projects instead. The publisher also claims that the trio was willing to release an unfinished game to maximize their payouts and damage the company's goodwill.
Furthermore, Krafton alleges that the trio secretly downloaded confidential information from Unknown Worlds in violation of the purchase agreement. The company emphasizes that it paid $500 million to acquire Unknown Worlds and asserts that the contractual terms for earnout payments were not met by the former executives.
In response, Unknown Worlds itself (now owned by Krafton) has filed a countersuit against the former leadership for dereliction of duty, accusing them of neglecting their responsibilities and scheming to obtain their earnout payments unfairly.
As of August 2025, no resolution or trial date has been announced, and legal proceedings are expected to continue for months or longer. The Subnautica 2 release has been delayed with no new early access date set, currently expected sometime in 2026.
A Subnautica 2 developer was quoted as saying that people enjoy survival games because they appeal to our "little monkey brains." This comment underscores the anticipation and excitement surrounding the game's release, despite the ongoing legal dispute.
[1] GamesIndustry.biz [2] Polygon [3] VentureBeat [4] The Verge [5] IGN
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