"Betrayal": dispute between Krafton and former "Subnautica" managers escalates
Dispute between Krafton and the founders of the “Subnautica” studio Unknown Worlds worsened rapidly. Controversial claims are likely followed by a legal dispute.
(Image: Unknown Worlds)
The farewells of high-ranking managers from their companies are often characterized by polite restraint: People publicly wish each other well and refrain from washing their dirty laundry. What is currently happening between Krafton and the founders of the “Subnautica” studio Unknown Worlds is anything but polite: In a remarkable statement, Krafton makes serious accusations against the recently dismissed executives, who in turn decide to file a lawsuit.
Krafton unexpectedly dismissed the two founders and the CEO of Unknown Worlds, which the South Korean publisher had purchased in 2021, at the beginning of July. Suspicions quickly arose that this could have been a strategic decision to prevent Unknown Worlds from meeting the requirements for a 250 million US dollar earn-out clause. According to Bloomberg, to qualify for the bonus payments, the studio still has to achieve a certain turnover in 2025. However, as the release of Unknown Worlds' upcoming survival game “Subnautica 2” was postponed at the same time as the manager dismissals, this financial target is at risk.
Krafton feels betrayed
Confronted with these accusations, Krafton went on the attack on Friday night. They had already allocated around 90 percent of the 250 million sum to the three former managers, according to a statement published on the Krafton homepage. This was linked to the expectation that the managers would “take a leading role in the development of 'Subnautica 2' and actively participate in it.” In reality, however, the founders and the CEO had completely neglected their duties, Krafton writes.
“Regrettably, the former leadership abandoned the responsibility entrusted to them,” writes Krafton. “Subnautica 2” was actually supposed to launch in early access in 2024. “Krafton has repeatedly asked Charlie [Cleveland] and Max [McGuire] to resume their roles as Game Director and Technical Director, respectively, but both have declined.” Krafton also had this to say about Unknown Worlds co-founder Charlie Cleveland: “Instead of participating in the development of the game, he preferred to focus on a personal movie project.”
“We are deeply disappointed by the behavior of the former managers,” Krafton continues. The ex-managers had betrayed the trust of the community. Krafton himself feels “betrayed”. Meanwhile, Krafton assures the remaining development team of “Subnautica 2” of full support as well as “fair and appropriate compensation.”
Ex-managers sue
The former managers of Unknown Worlds are not prepared to accept these accusations, writes co-founder Charlie Cleveland in a blog entry. “Suing a billion-dollar company in a painful, public, and potentially protracted manner was certainly not on my bucket list. But it needs to be set straight.” Details of the content of the lawsuit are not yet available. Cleveland rejects the implication that the management team at Unknown Worlds wanted to keep the bonus payments for themselves.
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Bloomberg has reported on the controversial earn-out clause and its possible connection with the departure of the studio bosses. According to the report, around 100 people work at Unknown Worlds. “Subnautica 2” was last scheduled to launch in Early Access in October 2025 but was postponed by Krafton to 2026. Krafton bought the studio Unknown Worlds in 2021 for 500 million US dollars.
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At the center of the dispute is the question whether “Subnautica 2” is ready for Early Access. Studio founder Cleveland wrote in an earlier post after his dismissal: “We know the game is ready for Early Access, and we know you're ready to play it.” Krafton counters that the current version does not have enough content for an Early Access launch.
By releasing “Subnautica 2” as an Early Access version, Unknown Worlds could generate considerable sales: the survival game is in 2nd place on Steam's wish list rankings, and the first part is considered a milestone in the survival genre. It is difficult to imagine that the development of Part 2 will not be affected by the public twist between the publisher and former studio bosses.
(dahe)
