Krafton blames ousted founders for Subnautica 2 delay
In a statement Friday, Krafton called its decision to replace the leadership at California-based Unknown Worlds a 'difficult but necessary step' to ensure the quality of the highly anticipated sequel.
'We allocated approximately 90 percent of the up to $250 million earn-out compensation to the three former executives, with the expectation that they would demonstrate leadership and active involvement in the development of Subnautica 2,' the company said. 'However, regrettably, the former leadership abandoned the responsibilities entrusted to them.'
The three founders — Ted Gill, Charlie Cleveland and Max McGuire — were recently dismissed after remaining in their roles for about four years following Krafton's 2021 acquisition of the studio for $500 million, not including the earn-out clause.
Krafton has since appointed Steve Papoutsis, former CEO of Striking Distance Studios, as the new head of Unknown Worlds.
Krafton also announced Friday that Subnautica 2's early access launch has been pushed back to 2026, following earlier targets of 2024 and then 2025. The company cited a lack of sufficient content in the prerelease.
In a statement on X the same day, Cleveland said the founders have filed a lawsuit against Krafton, insisting they remain committed to releasing an early access version of the game.
'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,' Cleveland wrote.
Subnautica 2 has been seen as a crucial release for Unknown Worlds, whose earlier entries in the franchise have sold about 18 million copies, according to securities firms. Delays to the sequel are viewed as a key factor behind the studio's declining performance.
Unknown Worlds reported operating profit of 28.1 billion won in the first half of 2021, prior to its acquisition. Annual operating profit has since steadily fallen to 19.8 billion won, 16.9 billion won and 13.4 billion won over the past three years.
While details of the lawsuit have not been disclosed, Krafton said it remains committed to supporting the studio and honoring promised compensation.
'We believe that the dedication and effort of this team are at the very heart of Subnautica's ongoing evolution, and we reaffirm our commitment to provide the rewards they were promised,' Krafton said.
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