Latest news with #UnknownWorlds
Korea Herald
19-07-2025
- 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
18-07-2025
- 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
18-07-2025
- Entertainment
- Mint
BGMI 3.9 update lets gamers play as Optimus Prime: How to join as a Transformer character
Krafton has launched the 3.9 update for Battlegrounds Mobile India (BGMI), introducing a new limited-time mode in collaboration with Transformers, headlined by the iconic character Optimus Prime. The latest update allows players to summon and take control of Optimus Prime during matches, marking a significant crossover in the mobile battle royale title. Using a new in-game item called the Spacebridge Beacon, which appears in specific drop zones, players can call in Optimus in his truck form. Once deployed, he transforms into his robot avatar, equipped with abilities such as the Thermal Axe and Charge Slam. In addition to these abilities, players can collect Energon Cubes throughout the match. These items serve as upgrade tools, enhancing Optimus Prime's combat skills and unlocking a powerful ultimate move. A new in-game event called the Transformers Prize Path is set to begin on 18 July. Through this event, players can complete missions and level up to unlock Optimus Prime-themed skins and other cosmetic rewards. Another feature introduced in the update is the Nemesis Showdown. If both Optimus Prime and Megatron are summoned within the same match, a special encounter can occur, leading to a cinematic battle between the two characters, adding a dramatic layer to standard gameplay. The BGMI 3.9 update is currently available for download on Android and iOS platforms. In other news, Krafton is reportedly considering extending the timeline for a potential bonus payout at its subsidiary, Unknown Worlds, following the delay of Subnautica 2 to next year. Approximately 40 team members at Unknown Worlds were in line to split a $25 million bonus, which was tied to the studio meeting specific revenue goals by the end of 2025, highlighted Bloomberg. A short-term extension had been factored into the original plan. However, with the game's launch now postponed, concerns have grown among staff that reaching those targets may no longer be feasible, putting their expected earnings at risk.
The Star
18-07-2025
- Business
- The Star
‘Subnautica 2' leaders say Krafton sabotaged game over payout
The ousted leadership of video-game developer Unknown Worlds said parent company Krafton Inc fired them after the executives presented the company with upbeat revenue projections that would have triggered most, if not all, of a US$250mil (RM1.06bil) bonus payment, according to a copy of their lawsuit which was unsealed July 16. Former Unknown Worlds chief executive officer Ted Gill and founders Charlie Cleveland and Max McGuire said Krafton sought to delay the release of their new game, Subnautica 2, after realising they would have to pay that large a sum, according to their complaint. The South Korean game publisher offered the executives a lower payout before terminating their employment earlier this month, the lawsuit alleges. Gill, Cleveland and McGuire filed a lawsuit for breach of contract on July 10. A representative for Krafton declined to comment on the suit. In a statement to press last week, Krafton said the three studio leaders had "abandoned the responsibilities entrusted to them' and that "the absence of core leadership has resulted in repeated confusion in direction and significant delays in the overall project schedule'. Krafton purchased Unknown Worlds in 2021 for US$500mil (RM2.12bil), with as much as US$250mil (RM1.06bil) more due to be paid in 2026 if the company hit certain revenue targets. The complaint argues that all was well between the two sides until a series of meetings in early 2025 when Gill was negotiating with Krafton about paying bonuses to employees who weren't eligible under the original acquisition terms. About 40 people employed by Unknown Worlds at the time of the sale were told they would receive payouts, mostly in the six-or-seven-figures, but the executives also wanted to offer bonuses to those who had joined later. During those meetings, Gill said that their revenue projections for the coming year had been conservative and that with the upcoming releases of the original Subnautica on mobile and Switch 2, they were expecting significantly higher numbers. Subnautica 2 was also expected to be a big hit, with nearly 2.5 million people adding the game to their wishlists on the PC platform Steam. "After Krafton's leaders reviewed Gill's projections and evaluated the anticipated revenue and earnout numbers, everything changed,' they said in their complaint. The leadership group said that in subsequent meetings, Krafton began pushing for Unknown Worlds to delay Subnautica 2. In the weeks that followed, Krafton employees told Gill they believed the company was trying to get out of paying the earnout, the complaint alleges. During one lunch meeting, according to the complaint, Krafton chief executive officer Changhan Kim told Cleveland that releasing the game in 2025 "could be disastrous financially and hugely embarrassing' for the company. Krafton later said that had been a mistranslation. Throughout May and June, the two sides continued to battle as Krafton halted publishing duties such as marketing and adapting the game for local markets, as well as paying vendors, according to the complaint. The former leadership team said that the publisher refused to support the game's imminent summer release and that Unknown Worlds missed out on "highly valuable' promotional opportunities because Krafton didn't respond to emails. Gill said he was told by one of Krafton's top executives that "pulling these resources was a permissible way for Krafton to avoid supporting the earnout', according to the complaint. By the end of June, the relationship had deteriorated. During various meetings, Krafton asked the leadership group to accept a lower earnout, according to the complaint. Around the same time, Kim wrote a letter to the leaders, reviewed by Bloomberg, accusing them of "failing to fulfill the responsibilities with which you were entrusted' and saying that Subnautica 2 had faced "slow and underwhelming progress'. On July 1, Krafton fired the three studio leaders, who are now seeking damages "in an amount to be determined at trial', according to their suit. Krafton has said it will extend the bonus period until next year, with Unknown Worlds employees able to share in a US$25mil (RM106.13mil) payout if revenue targets are hit. One main point of contention between the founders and Krafton was whether the game was ready for release this year under the company's early access model, which allows outsiders to play the game and submit feedback. Presentation slides from Krafton reviewed by Bloomberg, which included quotes from the company's internal testers, argued that Subnautica 2 lacked content and didn't feel innovative enough. The lawsuit alleges otherwise. Pre-release tests involving hundreds of users "drew high marks and confirmed that the game was ready to meet those lofty expectations", it said. Developers at Unknown Worlds speaking to Bloomberg said they believed the game was in good shape, as did some external parties, who asked to not be identified. One developer at a separate company who played Subnautica 2 and requested anonymity because they signed a non-disclosure agreement told Bloomberg they enjoyed the game and that it "seemed way more robust' than other titles in early access. The other point of contention was the roles that Cleveland and McGuire played at the studio. In public statements and in documentation reviewed by Bloomberg, Krafton accused the two founders of neglecting their duties because they were minimally involved with the development of Subnautica 2. In their suit, the founders said that Krafton was aware of their new roles and that Cleveland had spent a large amount of time working on a Subnautica film, which Krafton had asked the studio to develop. – Bloomberg
The Verge
16-07-2025
- Business
- The Verge
Subnautica 2's creators sue their publisher for ‘severely' damaging the game's release
The battle between Subnautica 2 publisher Krafton and the three former executives at its developer Unknown Worlds continues. Ted Gill, Charlie Cleveland, and Max McGuire — the three executives who Krafton terminated earlier this year — have filed a lawsuit detailing the alleged attempts by Krafton to torpedo the early access release of Subnautica 2 with the express purpose of avoiding paying a promised earnout bonus of $250 million. 'Krafton's actions have already severely damaged fan anticipation and undermined the potential release of Subnautica 2,' the lawsuit says. That earnout was promised by Krafton to the former executives and roughly 100 developers and was to be paid should Unknown Worlds hit revenue goals by the end of 2025. Subnautica 2, slated for early access release sometime in late 2025, would have all but assured those goals were met. According to the lawsuit filed today in a Delaware chancery court, Krafton also knew Subnautica 2 was on track to meet if not exceed the revenue target to trigger the payout and began to take steps to essentially prevent that. The original Subnautica, an underwater survival adventure game, was a critical and commercial success, and its sequel has become the second most wishlisted game ever on Steam. The lawsuit details a meeting between Krafton's US and Korean employees concerning the marketing strategy for Subnautica 2. After that meeting, Krafton's US employees, who worked closely with the Subnautica 2 team, reported that Kafton's attitude about the game had changed. 'Upon their return, the El Segundo team—Krafton employees—reported to Gill that Krafton's leadership was not focused on a successful launch, but instead on how it could convince Unknown Worlds to delay the game.' The lawsuit additionally states that Krafton's US employees explicitly revealed to the Unknown Worlds founders that 'Krafton's legal team was combing through the agreements looking for any opening to terminate the Founders if they proceeded with the planned release.' The lawsuit provided the details of the deal in which Krafton purchased Unknown Worlds back in 2021. The lawsuit says that part of that deal was an agreement that the founders would maintain control of the company and the release schedule of Subnautica 2, while Krafton could not impede the game's development nor fire Unknown Worlds' founders without cause. According to the lawsuit, Krafton launched a campaign to do both. Krafton allegedly failed to follow through on several of its development responsibilities for Subnautica 2 including pulling marketing and localization support. 'Indeed, one of Krafton's El Segundo publishing employees reported to Gill that Krafton Headquarters told all Krafton teams to stop all creative tasks related to Subnautica 2.' The lawsuit claims that Krafton took these obstructionist actions to delay the game to explicitly avoid the $250 million payout. At a meeting between Krafton CEO Changhan Kim and Charlie Cleveland, Kim allegedly stated that, 'if Unknown Worlds released the game on its planned timeline [...], it could be disastrous financially and hugely embarrassing for Krafton.' Krafton declined to comment. After the initial story broke regarding the alleged reason for Subnautica's delay, Bloomberg reported that Krafton agreed to extend the timeline for the earnout to account for Subnautica 2's later release. Previously, the company denied that it delayed Subnautica 2 for any other reason but to polish the game. Earlier this week, an internal document regarding Subnautica 2's development were leaked on Reddit. The document, consisting of two pictures taken of a computer screen, outlined the content originally planned for the game's early access launch and how some material had to be changed or removed to meet the release acknowledged the veracity of those documents saying, 'Given these circumstances, Krafton has determined that transparent communication is necessary and has chosen to confirm the authenticity of the document,' possibly to bolster its argument that Subnautica 2 was not ready for its early access release.
