Fri. Sep 5th, 2025

Legal Action Launched Against Krafton by Former Subnautica 2 Studio Heads

The narrative surrounding the development of the next Subnautica title has recently taken a significant turn, moving beyond development milestones and entering the realm of legal disputes. What began as news of a game delay has now escalated into formal legal proceedings involving key figures from the studio responsible for the beloved underwater survival series and its publisher.

Charlie Cleveland and Max McGuire, recognized as co-founders of Unknown Worlds Entertainment, the studio behind Subnautica, along with former CEO Ted Gill, have initiated a lawsuit against Krafton. Krafton is the South Korean publisher that acquired Unknown Worlds in 2021 and is set to publish the forthcoming Subnautica 2.

The filing of this lawsuit was publicly confirmed by Charlie Cleveland. He indicated that details of the legal action should eventually become public knowledge, expressing a view that the community deserves a comprehensive understanding of the situation. Cleveland also articulated the reluctance involved in pursuing legal action against a large corporation, describing it as a difficult but necessary step to rectify what he perceives as a wrong, emphasizing his long-standing dedication to the Subnautica franchise and the development team.

This legal conflict appears fundamentally linked to financial considerations surrounding the acquisition agreement. Reports have highlighted a potential substantial bonus payment, reportedly up to $250 million, contingent upon Unknown Worlds achieving specific financial performance metrics by 2025. The recent announcement delaying the release of Subnautica 2 from an anticipated 2024 early access window to a full launch in 2026 directly impacts the probability, or perhaps the possibility, of meeting those crucial 2025 targets.

Adding fuel to the fire, Krafton had previously issued a public statement following the delay and departures, which seemed to place responsibility on the former leadership, accusing them of “abandoning their responsibilities” during the game`s development. This public accusation likely contributed significantly to the decision by Cleveland, McGuire, and Gill to pursue legal recourse.

Cleveland has also publicly addressed the implications raised about the bonus, specifically refuting any suggestion that he and his partners intended to retain such a payment solely for themselves. He reinforced that historically, profits and financial incentives were shared with the development team and affirmed that this principle would apply to any earnout related to the acquisition and performance goals. He stressed his motivation is rooted in a passion for the industry and the game, rather than personal wealth accumulation, crediting the team for their work on the project.

The lawsuit signifies a serious turn in the relationship between the former studio heads and the publisher. It transforms what was a public exchange of statements into a formal legal battle, the outcome of which could potentially reveal more about the circumstances leading to the game`s delay and the changes in leadership. While the legal process unfolds, Subnautica 2 remains slated for its release in 2026 on PC and Xbox Series X|S, leaving fans observing a complex interplay of corporate strategy, financial incentives, and creative control.

By Percy Harlow

Norwich native Percy Harlow brings a unique perspective to combat sports coverage. With a background in amateur wrestling, Percy offers technical breakdowns that educate casual fans and satisfy hardcore enthusiasts alike.

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