The development of Subnautica 2 has been closely watched by fans and industry insiders alike, with the highly anticipated sequel originally slated for early access in 2025. As the follow-up of one to the most beloved underwater survival games in recent years, expectations have been sky-high.
However, recent behind-the-scenes developments suggests that all might not be well beneath the surface of Unknown Worlds. Tensions have escalated between the studio and its parent company, Krafton, following internal disagreements over project direction, roles, and the game’s release timing.
The former leadership of Unknown Worlds, the studio behind Subnautica 2, has filed a lawsuit accusing parent company Krafton of intentionally derailing the game’s development to avoid paying a $250 million performance-based bonus.
The complaint alleges that Krafton fired the studio heads after they projected strong revenue figures for upcoming titles—projections that would have triggered a substantial payout under the 2021 acquisition terms.
Importance: The Krafton Subnautica 2 lawsuit exposes conflicts between corporate profit motives and creative control in the gaming industry, risking the game’s release and highlighting challenges developers face with earnout agreements and publisher interference.
Leadership’s Optimistic Revenue Projections
According to the newly unsealed lawsuit, the conflict began earlier this year when Unknown World’s leadership—former CEO Ted Gill and studio founders Charlie Cleveland and Max McGuire—presented optimistic revenue forecast qualifying for $250 million additional compensation to the studio.
The projections were fueled by anticipated success from the Switch 2 and mobile versions of the original Subnautica, as well as the upcoming Subnautica 2, which had already been added to 2.5 million Steam wishlists.
Krafton’s Reaction To Revenue Projections Lead To Subnautica 2 Lawsuit
The lawsuit claims Krafton, allegedly attempted to renegotiate the earnout at a lower rate and ultimately delayed the game’s early access release from 2025 to 2026. Krafton is said to have halted marketing, publishing support, and vendor payments, ultimately delaying the sequel.
Krafton terminated Gill, Cleveland and McGuire, accusing them of mismanagement and detachment from the project. However, the trio insists Krafton was fully aware of their revised roles.
Despite Krafton’s claim that the sequel lacked polish, internal developers, external testers, and studio staff reportedly considered the game to be in strong shape for an early access release. The lawsuit seeks damages asserting that Krafton manipulated to save millions of payouts.
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