Subnautica 2’s legal saga just took an unexpected turn. After firing the founders of Unknown Worlds in July—initially citing the game’s readiness ahead of its planned early access—parent company Krafton is now walking back that explanation. In new court filings, Krafton argues the state of Subnautica 2 is irrelevant to the terminations and instead accuses the former leadership of abandonment and deception.
Here’s how it unfolded. After the firings, the co-founders sued Krafton. Unknown Worlds quickly reassured players that Subnautica 2 development would continue unchanged. Then the studio itself filed suit against its former leaders, alleging their actions slowed progress and that they had largely abandoned their roles as creative and technical leads.
The co-founders’ representatives say the original termination notices repeatedly blamed one thing: Subnautica 2’s lack of readiness for release. That stance has now shifted. Krafton claims the real reasons were abandonment of duties and deception, not the game’s condition.
Krafton has also accused the former executives of downloading files and retaining devices containing confidential information. But those claims surfaced after the terminations and could not serve as the basis for firing. The co-founders argued they were entitled to those materials, and the judge agreed.
Another point of contention is money. The co-founders’ side has accused Krafton of being evasive about a large earnout and resisting discovery requests, adding fuel to an already heated dispute.
The sudden change in reasoning caught both the co-founders’ team and the court off guard. Judge Lori W. Will pushed for immediate clarity, and both sides ultimately agreed that the game’s state was not the reason for the terminations.
What does this mean for Subnautica 2? Officially, the studio says development remains on track despite the courtroom drama. For fans, the headline is that the internal conflict now centers on alleged abandonment, deception, and financial disclosures—not the game’s readiness.
The case continues, and with both a leadership dispute and a sizable earnout on the line, it’s shaping up to be a pivotal moment for the Subnautica franchise.
