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Survival Games
OG Subnautica director is suing parent company Krafton after leadership changes: “Subnautica has been my life’s work and I would never willingly abandon it”

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The Subnautica 2 drama intensifies as Krafton accuses former Unknown Worlds leadership of pushing to release an unfinished game and secretly downloading “massive amounts of confidential information”

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Subnautica 2

“To say Krafton’s new theory is a Hail Mary would be an understatement”: Former Subnautica 2 studio leadership allege publisher Krafton has changed “its story mid-litigation about why it fired the founders”

Catherine Lewis

18 September 2025

It’s alleged that Krafton has “pivoted to a new theory that it admittedly came up with only after the fact”

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

(Image credit: Unknown Worlds / Krafton)

The legal drama surrounding Subnautica 2, former Unknown Worlds leadership, and parent company Krafton continues, as the trio of ex-developers now apparently allege that Krafton has “chang[ed] its story mid-litigation about why it fired the founders and seized control” of the studio.

Back in early July, Krafton announced that Steve Papoutsis – chief creative officer of The Callisto Protocol developer Striking Distance Studios – would be taking over as the CEO of Subnautica 2 studio Unknown Worlds, replacing former CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire.
Since then, the game has been delayed to 2026, the former Unknown Worlds leadership trio filed a lawsuit against Krafton, and Krafton fired back, alleging that Gill, Cleveland, and McGuire have “resorted to litigation to demand a multimillion-dollar payday they haven’t earned,” and that they previously wanted to self-publish the game without Krafton’s help, ultimately leaving the parent company with “no choice but to terminate their employment.” In addition, the publisher alleged that the trio “secretly downloaded massive amounts of confidential information from Unknown Worlds in further violations of the [purchase agreement].”

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OG Subnautica director is suing parent company Krafton after leadership changes: “Subnautica has been my life’s work and I would never willingly abandon it”

Fired Subnautica 2 leads suing Krafton say the company “was not focused on a successful launch” because it was too busy sabotaging that launch to avoid paying a $250 million bonus

The Subnautica 2 drama intensifies as Krafton accuses former Unknown Worlds leadership of pushing to release an unfinished game and secretly downloading “massive amounts of confidential information”

Now, as reported by GamesIndustry.biz, in new court papers from earlier this month, the former Unknown Worlds leadership claims that Krafton has “chang[ed] its story mid-litigation about why it fired the founders and seized control over Unknown Worlds,” specifically in relation to those aforementioned alleged downloads.

Gill, Cleveland, and McGuire allege that although Krafton first claimed to have terminated their positions due to their “supposed intention to proceed with a premature release of Subnautica 2,” the publisher has “pivoted to a new theory that it admittedly came up with only after the fact: that it terminated the Founders and seized control because the Founders backed up files they were entitled to access in their work for Unknown Worlds.”
The new court filing calls this a “disorganized retreat” from Krafton, adding: “To say Krafton’s new theory is a Hail Mary would be an understatement – both because the downloads were not wrongful and because Krafton claims not to have learned of them until after it had fired the Founders. The downloads cannot have been the actual motivation for termination.”
In the same document, it’s confirmed that the court has dismissed Krafton’s request for a forensic inspection and also denied an order asking for preservation. This isn’t the end of the case, however, with the two sides now apparently expected to meet.

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New Unknown Worlds CEO reacts to fans planning Subnautica 2 boycott: “Wow … That’s very disappointing.”

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Catherine Lewis

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Deputy News Editor

I’m GamesRadar+’s Deputy News Editor, working alongside the rest of the news team to deliver cool gaming stories that we love. After spending more hours than I can count filling The University of Sheffield’s student newspaper with Pokemon and indie game content, and picking up a degree in Journalism Studies, I started my career at GAMINGbible where I worked as a journalist for over a year and a half. I then became TechRadar Gaming’s news writer, where I sourced stories and wrote about all sorts of intriguing topics. In my spare time, you’re sure to find me on my Nintendo Switch or PS5 playing through story-driven RPGs like Xenoblade Chronicles and Persona 5 Royal, nuzlocking old Pokemon games, or going for a Victory Royale in Fortnite.

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OG Subnautica director is suing parent company Krafton after leadership changes: “Subnautica has been my life’s work and I would never willingly abandon it”

Fired Subnautica 2 leads suing Krafton say the company “was not focused on a successful launch” because it was too busy sabotaging that launch to avoid paying a $250 million bonus

The Subnautica 2 drama intensifies as Krafton accuses former Unknown Worlds leadership of pushing to release an unfinished game and secretly downloading “massive amounts of confidential information”

Subnautica 2 owner Krafton says “former leadership abandoned the responsibilities entrusted to them” in response to concerns over sudden changes and official delay: “We feel a profound sense of betrayal by their failure”

As Subnautica 2’s ugly $250 million lawsuit debate rumbles on, its new CEO hits back at claims the game was delayed to save a huge payout

New Unknown Worlds CEO reacts to fans planning Subnautica 2 boycott: “Wow … That’s very disappointing”

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