Subnautica developers sue Krafton for replacing entire Subnautica 2 leadership team

Unknown Worlds developers are suing Krafton over the recent Subnautica 2 controversy, former game director Charlie Cleveland announced on Twitter.

2

Recently, Krafton, the South Korean games company that owns PUBG, shocked the industry by ousting Subnautica 2's leadership team. Unknown Worlds CEO Ted Gill, studio co-founder Max McGuire, and Subnautica 2 game director Charlie Cleveland were let go by Krafton, replaced by Steve Papoutsis from sister studio Striking Distance.

The decision sparked major controversy in the Subnautica community, and both Krafton and Unknown Worlds are dealing with the fallout. It's now been revealed that the former Subnautica devs have banded together to collectively sue Krafton, Inc., but the exact details of the legal complaint remain unclear.

The scandal heated up when it was revealed that Krafton delayed Subnautica 2 into 2026, potentially so it could avoid paying a $250 million bonus to Unknown Worlds. Reports from Bloomberg indicate that Unknown Worlds could have achieved the substantial quarter-of-a-billion-dollar bonus if it hit specific revenue targets throughout 2025. With Subnautica 2 delayed into 2026, it seems unlikely that these targets could be met, even with Subnautica having just been released onto mobile.

Here's what former Subnautica 2 game developer Charlie Cleveland said about the lawsuit. We've checked the Court Listener data and cannot find any information on a new lawsuit against Krafton, Inc., so details should be unearthed in due time.

We've now filed a lawsuit against Krafton: the details should eventually become (at least mostly) public - you all deserve the full story.

Suing a multi-billion dollar company in a painful, public and possibly protracted way was certainly not on my bucket list. But this needs to be made right. Subnautica has been my life's work and I would never willingly abandon it or the amazing team that has poured their hearts into it.

As for the earnout, the idea that Max, Ted and I wanted to keep it all for ourselves is totally untrue. I'm in this industry because I love it, not for riches. Historically we've always shared our profits with the team and did the same when we sold the studio.

You can be damned sure we'll continue with the earnout/bonus as well. They deserve it for all their incredible work trying to get this great game into your hands.