Former Leadership of Unknown Worlds Alleges Krafton Used Coercive Tactics to Postpone Subnautica 2 Release

A recent lawsuit filed by the former leadership of Subnautica 2 developer Unknown Worlds has shed light on a contentious dispute with Krafton, Inc. The complaint centers around a $250 million bonus payout tied to the game's revenue targets for its 2025 Early Access release. The plaintiffs allege that Krafton attempted to circumvent this payout by using 'pressure tactics' to delay the game's launch. According to the complaint, Krafton engaged in a prolonged campaign to hinder the game's release by withholding key marketing materials, refusing to honor crucial partnerships, and reneging on commitments to handle essential pre-launch tasks. The complaint further states that multiple Krafton employees admitted these actions were intended to frustrate the earnout, despite the earnout agreement's prohibition on such actions. The lawsuit reiterates previous claims made by Unknown Worlds co-founder and former creative director Charlie Cleveland, who is represented in the complaint, that Subnautica 2 was ready for an Early Access launch in 2025. As a result, the studio refused to delay the launch and had retained 'complete operational control' over the game as part of the 2021 agreement for Krafton to acquire Unknown Worlds. The complaint alleges that Krafton's efforts to delay the launch ultimately failed, leading to the removal of the leadership team, including Cleveland, Adam 'Max' McGuire, and Edward 'Ted' Gill. Following their ousting, Krafton decided to postpone the game's launch until 2026, citing community feedback and the need for additional content. The complaint argues that this decision was made to avoid the $250 million earnout and to retain the game's revenue for itself. The plaintiffs are seeking equitable and monetary relief, as well as the return of 'complete creative and operational control' over the game. The complaint also alleges that Krafton's actions have damaged community trust and affected anticipation for Subnautica 2, which is currently the second most-wishlisted game on Steam. A 10% portion of the $250 million payout was initially earmarked for staff, but the complaint notes that the founders had planned to share a larger portion of the payout with their team. Krafton has extended the eligibility period for this 10% payout despite delaying the game, which will benefit approximately 40 staff members. The lawsuit highlights a key passage in the 2021 agreement that permits Krafton to terminate the founders only under specific circumstances, including the commission of a felony or intentional disclosure of trade secrets. The complaint argues that Krafton's actions do not meet these criteria and that the company has breached its agreement with the founders. Other points of contention discussed in the complaint include Krafton's understanding of the founders' day-to-day responsibilities and the company's stance on the payouts, which allegedly changed once financial projections were made around the game's launch. In response to the lawsuit, Krafton stated that its decisions were made to ensure Subnautica 2 meets fan expectations and that releasing the game prematurely would have damaged the reputations of both the Subnautica and Unknown Worlds brands. The company expressed disappointment in the lawsuit but looks forward to defending itself in court, remaining focused on delivering the best possible game to Subnautica's fans as quickly as possible.