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Korea Herald
2 days ago
- Entertainment
- Korea Herald
Krafton says Subnautica 2 delay aimed at protecting fans, franchise reputation
South Korean game publisher Krafton Inc. said Saturday its recent decisions regarding the development of Subnautica 2 were made to protect the interests of game fans and ensure the long-term success of the franchise, as the company faces a legal dispute with the former leadership of its U.S. development subsidiary Unknown Worlds. "Releasing the game prematurely with insufficient content, falling short of what fans expect in a sequel, would have both disappointed the players -- who are at the heart of everything Krafton does -- and damaged the reputations of both the Subnautica and Unknown Worlds brands," the company said in a statement. It added that the decisions were "made to ensure Subnautica 2 is the best possible game and lives up to fan expectations. The statement came amid an ongoing high-profile legal dispute with the former leadership of Unknown Worlds. Krafton acquired Unknown Worlds in October 2021 in a deal aimed at diversifying its portfolio beyond its flagship PUBG shooter franchise. At the time, the company highlighted the studio's strong intellectual properties and reputation for globally appealing, community-driven gameplay experiences. Earlier this month, however, Krafton removed Unknown Worlds co-founders Charlie Cleveland and Max McGuire, along with CEO Ted Gill, citing a lack of leadership and delays in the development of Subnautica 2. In response, the former Unknown Worlds leaders have filed a lawsuit against Krafton, alleging breach of contract. They alleged that Krafton sought to avoid issuing a $250 million bonus payment by delaying the game using "pressure tactics." "While we are disappointed that Charlie, Max and Ted have filed a lawsuit seeking a huge payout, we look forward to defending ourselves in court. In the meantime, Krafton remains focused on what matters: delivering the best possible game as quickly as possible to Subnautica's fans," the company said. The public dispute has drawn concern from Subnautica fans, with some calling for a boycott of the sequel over worries about the game's creative direction and the publisher's role in recent changes. In its earlier remarks, Krafton emphasized, "Fans are always at the center of every decision we make," and pledged to repay their patience with a "refined and outstanding gameplay experience." (Yonhap)
Engadget
3 days ago
- Entertainment
- Engadget
What the hell is going on with Subnautica 2?
If I had to describe the status of Subnautica 2 in just three words, it would be these: messy, messy, messy. That's not to say the game itself is in terrible shape — this is actually a pivotal claim in the whole situation — but the relationship between Subnautica series developer Unknown Worlds and its parent company, Krafton, is in shreds. This month alone, Krafton fired the founders and CEO of Unknown Worlds, Subnautica 2 was delayed until 2026 and the ousted leaders filed a lawsuit against Krafton, looking to regain creative control of the game and the studio. At the center of the conflict is a bonus payment worth up to $250 million. Here's a rundown of how we got here and what in the devil is going on with Subnautica 2 , Krafton and Unknown Worlds. Charlie Cleveland accidentally started Unknown Worlds in 2001 while building the popular Half-Life mods Natural Selection and Natural Selection 2 , and technical director Max McGuire came on as an official studio co-founder in 2006. Inspired by Minecraft and burned out on mods, Unknown Worlds began working on the undersea, open-world exploration game Subnautica and released it in early access on Steam in 2014. With years of community feedback, the game evolved into a singularly tense and rich survival experience, and version 1.0 officially landed in 2018. This is also when Ted Gill joined the studio's executive team, freeing up Cleveland to focus on creative direction. Subnautica and its spin-off, Subnautica: Below Zero , attracted millions of players and established Unknown Worlds as a successful independent team. So, the larger studios came sniffing. PUBG publisher Krafton, which operates with billions of dollars annually, purchased Unknown Worlds in 2021 for $500 million. The acquisition came with the promise of an additional payout worth up to $250 million if Unknown Worlds hit certain performance goals by the end of 2025. This bonus is a critical piece of the chaos today. We know more about the details of this deal thanks to recent reporting by Bloomberg . In addition to the leadership positions, which were filled by Cleveland, Gill and McGuire, Unknown Worlds had about 40 employees at the time of the Krafton sale, and they received payouts totaling $50 million at closing and over the following two years. This larger group was poised to receive as much as $25 million in the 2025 performance-based earnout, with each person expecting a different amount, but most estimating six or seven figures. The remaining $225 million was reserved for the Unknown Worlds leadership, but they said they intended to share a portion of their windfall with employees who weren't included in the bonus, covering the full studio headcount of about 100 people. The leadership of Unknown Worlds repeated this promise in a lawsuit filed against Krafton on July 10, 2025. But we're getting ahead of ourselves. After the acquisition, Unknown Worlds continued updating Subnautica and Below Zero . In February 2024, the studio released Moonbreaker , a turn-based strategy game that never really took off, partially because of its initial microtransaction system . Since then, the studio has been focused on Subnautica 2 . The game was officially announced in October 2024 with a prospective early access launch window of 2025. It's currently the second-most wishlisted game on Steam, after Hollow Knight: Silksong . The first public notion that something was rotten between Unknown Worlds and Krafton came on July 2, when Cleveland, Gill and McGuire were fired and replaced by former Callisto Protocol studio head Steve Papoutsis. Krafton didn't provide a reason for the switch-up in its press release , instead offering the following nearly complete thought: 'While Krafton sought to keep the Unknown Worlds' co-founders and original creators of the Subnautica series involved in the game's development, the company wishes them well on their next endeavors.' Krafton didn't mention delaying the early access launch at this time, but it implemented a review process that it said would be 'essential to delivering the right game at the right time.' The publisher suggested the ousted leaders had been uncooperative in this aspect. 'Unknown Worlds' new leadership fully supports this process and is committed to meeting player expectations,' its press release said. Cleveland published a blog post on July 4 reflecting on his time in game development, and sharing his disappointment at Krafton's handling of Unknown Worlds and Subnautica 2 . He also referenced Krafton's intent to delay the launch. 'You can see why for Max, Ted, myself, the Unknown Worlds team, and for our community, the events of this week have been quite a shock,' Cleveland wrote. 'We know that the game is ready for early access release and we know you're ready to play it. And while we thought this was going to be our decision to make, at least for now, that decision is in Krafton's hands. And after all these years, to find that I'm no longer able to work at the company I started stings.' On July 9, Krafton officially delayed the early access launch of Subnautica 2 to 2026. That same day, Bloomberg published a report outlining the performance-based bonus agreement and implicitly questioning how the timing of the delay would make it difficult for the studio to hit its goals, putting the payout in jeopardy. This was the first time the details of the bonus became public. Krafton shared a statement with Engadget — and in a pop-up on its own homepage — on July 10 that straight-up accused the fired leaders of abandoning the studio in favor of personal creative pursuits, specifically calling out Cleveland's film production company . It also threw shade at Moonbreaker and claimed the former bosses wanted the bonus payment 'for themselves.' 'Krafton made multiple requests to Charlie and Max to resume their roles as Game Director and Technical Director, respectively, but both declined to do so,' the statement said. 'In particular, following the failure of Moonbreaker , Krafton asked Charlie to devote himself to the development of Subnautica 2 . However, instead of participating in the game development, he chose to focus on a personal film project. Krafton believes that the absence of core leadership has resulted in repeated confusion in direction and significant delays in the overall project schedule. The current Early Access version also falls short in terms of content volume.' That same day, Cleveland announced that he and the other ousted studio heads had filed a lawsuit against Krafton. 'Suing a multibillion dollar company in a painful, public and possibly protracted way was certainly not on my bucket list,' Cleveland wrote. '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.' The lawsuit wasn't unsealed until July 16. But on July 15, Bloomberg reported that Krafton now planned to extend the window for the bonus payment by an additional year, giving the studio more time to hit its goals. The publisher will also reportedly advance a portion of a separate profit-sharing bonus pool to all Unknown Worlds employees in 2025. These moves seem designed to moot the core issues raised in the breach of contract complaint that Cleveland and other Unknown Worlds leaders filed against Krafton in Delaware Chancery Court. The lawsuit, unsealed on July 16, claims Krafton illegally fired the studio heads and delayed Subnautica 2 in order to avoid the bonus payments. It also provides a timeline of growing tensions between the founders and Krafton this year, accusing the publisher of intentional sabotage. The lawsuit claims that Krafton and Unknown Worlds had a respectful relationship until April 2025, when Gill presented Krafton executives with the studio's positive revenue projections, which were made with the assumption that Subnautica 2 would hit early access in 2025. He also outlined the expected bonus payout under the agreement. 'When that happened, everything changed,' the lawsuit reads. The complaint alleges that at this point, Krafton began looking for ways to force out the leaders of Unknown Worlds and delay the launch of Subnautica 2 , with a goal of circumventing the bonus payment. Cleveland, Gill and McGuire argued back and forth with Krafton executives over whether the game was ready for early access, and Krafton eventually pulled all of its resources from the studio. Krafton issued a stop order on Subnautica 2 development, took over Unknown Worlds' communications channels and in June it started laying an internal paper trail accusing the founders of abandoning their fiduciary duties, according to the complaint. Cleveland, Gill and McGuire were fired and removed from the Unknown Worlds board of directors on July 1. This is where the rest of us entered the story. To view this content, you'll need to update your privacy settings. Please click here and view the "Content and social-media partners" setting to do so. The main conflict here is over whether Subnautica 2 is really ready for an early access launch, and that matters because of a potential $250 million bonus payment that's jeopardized by a delay. Not only is this a large sum for Krafton to lose, but it's also a massive amount of money for Cleveland, Gill and McGuire to miss out on, especially now that they've lost their studio and tentpole IP. The ousted leaders reiterated in their lawsuit that they 'planned to share even more of the earnout with their dedicated team' than they were contractually obligated to. In the complaint, they're looking for Krafton to pay out the full bonus as projected without a delay, fulfill its obligations as a publisher and reinstate them as the heads of Unknown Worlds. Every party in this situation claims they want what's best for Subnautica 2 and its players. It's possible that they're all telling the truth and this is a simple disagreement over artistic integrity. It's also possible that they're all lying and everyone is looking to make (or keep) a quick buck — but man, that's bleak. The truth, as usual, likely lies somewhere in between and, chances are, we'll never know it. At least the court system will eventually be able to determine the second-best thing, which is who's at fault. Have a tip for Jessica? You can reach her by email , Bluesky or send a message to @jesscon.96 to chat confidentially on Signal. If you buy something through a link in this article, we may earn commission.
Mint
5 days ago
- Business
- Mint
Krafton Extends ‘Subnautica 2' Bonus Period, Is Sued by Founders
(Bloomberg) -- South Korean video game publisher Krafton Inc. plans to extend the schedule for a potential bonus payout at its subsidiary Unknown Worlds after delaying the highly anticipated survival game Subnautica 2 until next year. About 40 employees at Unknown Worlds were eligible to share a $25 million bonus, contingent upon the studio hitting certain revenue targets by the end of 2025, with a possible short-term extension. When Krafton said earlier this month that it planned to push back the game's release, employees feared that it wouldn't be possible to hit those targets and that their potential earnings would disappear. Now, that schedule has been extended an additional year, according to people familiar with the events at the studio and documentation seen by Bloomberg. Krafton also said it would advance a portion of the studio's projected 2026 profit-sharing bonus pool, which is independent from the bonus, to all Unknown Worlds employees this year. The issues around Subnautica 2 are at the center of a battle between Krafton and the former leadership team of Unknown Worlds — Chief Executive Officer Ted Gill and founders Charlie Cleveland and Max McGuire — who were fired in early July. Krafton purchased Unknown Worlds in 2021 for $500 million with an additional $250 million to be paid in 2026, depending on the company's performance under an earnout agreement. Of that, 10% was earmarked for staff who were there at the time, according to paperwork seen by Bloomberg. The roughly 40 employees each received checks of varying amounts at the closing and in the two years that followed, totaling $50 million, and were due to receive upwards of $25 million if the company hit those revenue targets. Each employee was told they would get a different sum, with most in the six or seven figures. Gill and the leadership group, who were due to receive the bulk of the remaining $225 million, had also said that they would distribute an unspecified amount to employees who weren't eligible for the earnout, although that isn't specified in the paperwork. On July 10, the former leadership group filed a breach of contract complaint against Krafton in Delaware Chancery Court. As of Tuesday, the complaint remained sealed. One main point of contention between the two parties is whether Subnautica 2, the sequel to a surprise 2018 hit, was ready for an early access release this year. The leadership group and Unknown Worlds developers who spoke to Bloomberg said the game was in good shape for early access, a model in which games are sold while in active development so that fans can offer feedback during the process. But since last week, Krafton has sent several statements suggesting that the game wasn't ready and that the studio's co-founders had neglected their duties, which 'resulted in repeated confusion in direction and significant delays in the overall project schedule,' according to the company. More stories like this are available on
Engadget
11-07-2025
- Entertainment
- Engadget
Subnautica studio co-founder says he's suing parent company Krafton
The drama surrounding the significantly delayed release of Subnautica 2 continues with Charlie Cleveland, co-founder and former director of Unknown Worlds Entertainment, announcing via a post on X that he and unnamed others have filed a lawsuit against Krafton , the studio's parent company since 2021. Cleveland, along with Ted Gill and Max McGuire, were relieved of their leadership roles at Unknown Worlds last week by Krafton. Bloomberg reported that they had been effectively "pushed out." This occurred shortly before Krafton would reportedly owe Unknown Worlds leadership a $250 million bonus for meeting certain goals. The alleged lawsuit follows Krafton's recent statement accusing Cleveland and other studio leadership of "abandoning their responsibilities." The parent company claims these executives' behavior led to significant delays in Subnautica 2 's early access release, which is now slated for early 2026. Krafton also claimed that approximately 90 percent of the $250 million bonus was already paid out to Cleveland, Gill and McGuire. In his post , Cleveland strongly refuted Krafton's claims, asserting that Subnautica 2 is in fact "ready for early access" and that any allegations regarding abdication of leadership and financial motivations are false. "Subnautica has been my life's work and I would never willingly abandon it," Cleveland wrote. He also firmly denied accusations that he and other executives intended to keep the promised $250 million bonus for themselves, saying, "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." Details about the lawsuit, including the jurisdiction, named parties or specific causes of action remain unclear. Subnautica 2 is still slated for an early access launch sometime in 2026, though it remains to be seen if this new legal drama will cause further delays.
The Verge
11-07-2025
- Entertainment
- The Verge
Subnautica 2's fired bosses are suing Krafton.
Subnautica 2's fired bosses are suing Krafton. 'We've now filed a lawsuit against Krafton,' says Unknown Worlds co-founder (and Subnautica director) Charlie Cleveland. He says fans 'deserve the full story' and 'the idea that Max, Ted and I wanted to keep it all for ourselves is totally untrue.'
