The ongoing Subnautica 2 drama has evolved into a major industry saga as former leaders of Unknown Worlds, including CEO Ted Gill, creative director Charlie Cleveland, and technical director Max McGuire, have sued publisher and parent company Krafton. They allege that Krafton “sabotaged” the game’s 2025 early access release to dodge a $250 million incentive.
Filed on July 10, 2025, in Delaware Chancery Court, the 58-page lawsuit accuses Krafton of violating the 2021 acquisition agreement by impeding Subnautica 2’s development and unjustly firing the trio. The document states that Krafton breached its commitment to keep creative control with the founders and not terminate them without cause.
The lawsuit claims Krafton undertook these actions to avoid paying the $250 million bonus linked to the game’s success. It accuses the company of firing the founders to delay the launch, thereby capturing the game’s profits without honoring the promised payout.
Controversy initially erupted when Krafton announced the replacement of the former leadership with Steve Paoutsis, former CEO of Striking Distance Studios, citing a need for “renewed energy and momentum.” Shortly after, Krafton delayed Subnautica 2’s release, which, according to the lawsuit, was a strategic move to evade the substantial bonus payout.
Seeking the full $250 million promised, damages, and reinstatement of their leadership, the former Unknown Worlds team has sparked a divided response from the gaming community. Some fans are considering a boycott, accusing Krafton of prioritizing profit over creative integrity.
