What began as a sudden dismissal of key leadership figures has now escalated into one of the gaming industry’s most talked-about legal dramas. For the past week, the conflict between publisher Krafton and the former leads of Subnautica 2 developer Unknown Worlds has been unfolding rapidly, with new developments shedding light on the troubled state of the game’s production.
The controversy started when Krafton abruptly replaced three top executives from Unknown Worlds, including the studio’s founder and Subnautica creator, Charlie Cleveland. Accusations quickly followed, suggesting the terminations were a strategic move by Krafton to delay Subnautica 2‘s release beyond its originally targeted 2025 window, allegedly to avoid paying a promised performance bonus of US$250 million.
Krafton responded with an official statement, accusing the former leadership team of neglecting their primary responsibilities due to involvement in side projects. This, according to the publisher, led to stagnation in the development process.
The Subnautica 2 Conflict
In response to KRAFTON’s claims, Charlie Cleveland has officially announced his intention to pursue legal action. In a statement posted on Reddit, Cleveland expressed his disbelief at the situation, admitting he never imagined he would be suing a billion-dollar company. However, he emphasised that this step is necessary to “set the record straight.”
Cleveland also refuted allegations that he and the two other dismissed executives, Max McGuire and Ted Gill, were the sole beneficiaries of the promised bonus. He asserted that, throughout the studio’s history, profits were always shared with the entire team, including during the sale of Unknown Worlds to Krafton.
In a surprising twist, an internal KRAFTON document for Subnautica 2’s development was leaked on Reddit shortly after the lawsuit announcement. The document, whose authenticity has since been confirmed by the publisher, paints a picture of persistent delays and unmet development milestones. It highlights the publisher’s dissatisfaction with the game’s progress, even by Early Access standards.
The community has responded with divided opinions. Some players expressed concern over the prolonged development timeline and began questioning the previous leadership’s effectiveness. Others, however, are sceptical of the timing behind the leak, noting that the anonymous source may have intended to sway public perception amidst the legal dispute.
As it stands, Krafton remains committed to pushing Subnautica 2’s Early Access release to 2026, adding yet another layer of uncertainty to the troubled project’s future.
