{"id":739,"date":"2025-07-11T06:50:34","date_gmt":"2025-07-11T02:50:34","guid":{"rendered":"http:\/\/www.actutech.app\/krafton-slams-ex-subnautica-2-execs-who-now-say-theyre-suing\/"},"modified":"2025-07-11T06:50:34","modified_gmt":"2025-07-11T02:50:34","slug":"krafton-slams-ex-subnautica-2-execs-who-now-say-theyre-suing","status":"publish","type":"post","link":"https:\/\/www.actutech.app\/en\/krafton-slams-ex-subnautica-2-execs-who-now-say-theyre-suing\/","title":{"rendered":"Krafton slams ex-Subnautica 2 execs \u2014 who now say they\u2019re suing"},"content":{"rendered":"
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Subnautica 2 <\/em>has been at the center of a contentious debate between leadership at its developer Unknown Worlds and the game\u2019s publisher, Krafton Games. At stake is a $250 million payout, promised to Unknown Worlds if the studio hit certain revenue targets by the end of this year. But a company shakeup and the subsequent delay of Subnautica 2 <\/em>has rocked the studio and potentially imperiled the promised payout, and now one of Unknown World\u2019s fired founders says they\u2019re suing.<\/p>\n

On July 2nd, Krafton announced that Steve Papoutsis, CEO of The Callisto Protocol<\/em> developer Striking Distance Studios would be taking over as the CEO of Unknown Worlds<\/a>, replacing the current leadership of Ted Gill, Charlie Cleveland, and Max McGuire with immediate effect.\u00a0<\/p>\n

The following week, on July 9th, Unknown Worlds announced that early access for Subnautica 2<\/em> would be delayed to 2026<\/a>. According to the announcement, Subnautica 2<\/em> was in good shape, but closed testing revealed \u201csome insight that there are a few areas where we needed to improve before launching the first version of Subnautica 2<\/em> to the world.\u201d\u00a0<\/p>\n

That same day, Bloomberg<\/em>\u2019s Jason Schreier reported that<\/a> this delay was against the wishes of Unknown Worlds\u2019 former leadership and that there were serious financial implications for this delay. According to Schreier\u2019s report, when Krafton purchased Unknown Worlds, in 2021 it promised a $250 million bonus to the studio if it hit revenue targets by the end of 2025. Schreier\u2019s reporting also indicated that the bonus was planned to be shared among the studio\u2019s roughly 100 employees with some being promised bonuses in the seven figures.\u00a0<\/p>\n

With Subnautica 2<\/em>\u2019s delay, those revenue targets will likely not be hit, and those bonuses not paid out. In a statement to Bloomberg<\/em>, Krafton said the delay was only to improve Subnautica 2<\/em>\u2019s quality, and it\u2019s possible to envision a situation where Krafton delayed the game in order to get out of paying out the bonus<\/a>.<\/p>\n

However, Krafton has issued a new statement that seemingly throws cold water over this interpretation. The statement says that Krafton had \u201callocated approximately 90% of the up to $250 million earn-out compensation to the three former executives\u201d with the \u201cexpectation\u201d that the executives would \u201cdemonstrate leadership and active involvement in the development of Subnautica 2<\/em>.\u201d The statement then accuses the ousted leadership of essentially abandoning development on the game while affirming \u201cfair and equitable compensation for all remaining Unknown Worlds employees.\u201d<\/p>\n

Later on Thursday, Unknown Worlds co-founder (and\u00a0Subnautica<\/em>\u00a0director) Charlie Cleveland responded to these accusations by saying he\u2019s filed a lawsuit. \u201cAs for the earnout, the idea that Max, Ted and I wanted to keep it all for ourselves is totally untrue,\u201d he writes<\/a>. \u201cHistorically we\u2019ve always shared our profits with the team and did the same when we sold the studio.\u201d<\/p>\n

We\u2019ve asked for a copy of the legal complaint.<\/p>\n

Here are Krafton and Cleveland\u2019s statements in full. You can also see them on Krafton\u2019s website<\/a> and on Cleveland\u2019s blog.<\/a><\/p>\n

Krafton:<\/h2>\n
\n

To Our 12 Million Fellow Subnauts,<\/p>\n

\u2014\u00a0<\/em><\/strong>\u00a0Inevitable Leadership Change Driven by Project Abandonment\u2013Despite Holding 90% of Earnout for Themselves<\/em><\/strong><\/p>\n

First and foremost, we sincerely thank you for your continued support, passion, and unwavering dedication to Subnautica. We wish to provide clarity on the recent leadership changes at Unknown Worlds, a creative studio under KRAFTON.<\/p>\n

Background of Leadership Change\u00a0<\/strong><\/p>\n

KRAFTON deeply values Subnautica\u2019s unique creativity and immersive world-building. To provide fans with even better gaming experiences, we acquired Unknown Worlds, fully committed to supporting Subnautica\u2019s future success. We collaborated closely with the studio\u2019s leadership, who were central to the creation of the original Subnautica, to foster the optimal environment for a successful Subnautica 2.<\/p>\n

Specifically, in addition to the initial $500 million purchase price, we allocated approximately 90% of the up to $250 million earn-out compensation to the three former executives, with the expectation that they would demonstrate leadership and active involvement in the development of Subnautica 2.<\/p>\n

However, regrettably, the former leadership abandoned the responsibilities entrusted to them. Subnautica 2 was originally planned for an Early Access launch in early 2024, but the timeline has since been significantly delayed. 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. 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.<\/p>\n

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.
We are deeply disappointed by the former leadership\u2019s conduct, and above all, we feel a profound sense of betrayal by their failure to honor the trust placed in them by our fans.<\/p>\n

KRAFTON\u2019s Full Support for the Dedicated Development Team\u00a0<\/strong><\/p>\n

To uphold our commitment to provide you with the best possible gaming experience, we made the difficult yet necessary decision to change the executive leadership. Subnautica 2 has been and continues to be actively developed by a dedicated core team who share genuine passion, accountability, and commitment to the game. We deeply respect their expertise and creativity and will continue to provide full and unwavering support, enabling them to focus solely on delivering the exceptional game you deserve.<\/p>\n

KRAFTON\u2019s Commitment to its Promises in Rewarding Employees\u00a0<\/strong><\/p>\n

Additionally, KRAFTON has committed to fair and equitable compensation for all remaining Unknown Worlds employees who have continuously and tirelessly contributed to Subnautica 2\u2019s development. We believe that the dedication and effort of this team are at the very heart of Subnautica\u2019s ongoing evolution, and we reaffirm our commitment to provide the rewards they were promised.<\/p>\n

Fans will always remain at the center of every decision we make at KRAFTON. Moving forward, we promise transparent communication and continued efforts to sustainably develop and expand the beloved Subnautica universe.<\/p>\n

Honoring your trust and expectations is a core tenet at KRAFTON. We are committed to repaying your patience with an even more refined and exceptional gaming experience.<\/strong><\/p>\n<\/blockquote>\n

Cleveland<\/h2>\n
\n

Hello everyone,<\/p>\n

It continues to be an explosive and surreal time for the Subnautica team and community. None of this is what we wanted. But we truly appreciate the amazing support we\u2019ve gotten from everyone. It means a lot to us, especially now.<\/p>\n

As\u00a0I wrote last week<\/u><\/a>, we know in our souls that the game is ready for Early Access \u2013 that\u2019s just how we roll. And we\u2019d like nothing more than for you to play it (game devs\u00a0live<\/strong>\u00a0for this). But it\u2019s not currently under our control.<\/p>\n

We\u2019ve now filed a lawsuit against Krafton: the details should eventually become (at least mostly) public \u2013 you all deserve the full story. Suing a multi-billion dollar company in a painful, public and possibly protracted way was certainly not on my bucket list. But this needs to be made right. Subnautica has been my life\u2019s work and I would never willingly abandon it or the amazing team that has poured their hearts into it.<\/p>\n

As for the earnout, the idea that Max, Ted and I wanted to keep it all for ourselves is totally untrue. I\u2019m in this industry because I love it, not for riches. Historically we\u2019ve always shared our profits with the team and did the same when we sold the studio. You can be damned sure we\u2019ll continue with the earnout\/bonus as well. They deserve it for all their incredible work trying to get this great game into your hands.<\/p>\n

Stay tuned.<\/p>\n

-Charlie<\/p>\n<\/blockquote>\n

Update, July 10th: <\/strong>Added Cleveland\u2019s response.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

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