If I had to summarize the current status of Subnautica 2, it would be in three words: messy, messy, messy. However, this does not imply that the game itself is in dire straits. In fact, the situation is pivotal, highlighting the fractured relationship between the Subnautica series developer, Unknown Worlds, and its parent company, Krafton. Recently, Krafton made headlines by firing the founders and CEO of Unknown Worlds, delaying Subnautica 2 until 2026, and facing a lawsuit filed by the ousted leaders. This legal action aims to regain creative control over both the game and the studio, centered around a contentious bonus payment potentially worth up to $250 million. Below is a comprehensive overview of the unfolding drama surrounding Subnautica 2, Krafton, and Unknown Worlds.
Unknown Worlds was inadvertently founded by Charlie Cleveland in 2001 while he was developing popular Half-Life mods, including Natural Selection and Natural Selection 2. In 2006, technical director Max McGuire joined as a co-founder. The studio shifted its focus to creating the undersea, open-world exploration game Subnautica, which was released in early access on Steam in 2014. After years of community feedback and updates, the game evolved into a unique survival experience, officially launching its version 1.0 in 2018. This was also the year Ted Gill became part of the executive team, allowing Cleveland to concentrate on the game's creative direction. The success of Subnautica and its spin-off, Subnautica: Below Zero, attracted millions of players, establishing Unknown Worlds as a formidable independent studio.
In 2021, PUBG publisher Krafton acquired Unknown Worlds for a staggering $500 million, with the promise of an additional payout of up to $250 million if the studio met specific performance goals by the end of 2025. This bonus payment has become a crucial element of the current chaos. Reports from Bloomberg reveal that at the time of the acquisition, Unknown Worlds employed around 40 individuals who received payouts totaling $50 million upon closing, with expectations of additional bonuses for the team based on performance metrics. The leadership of Unknown Worlds expressed intentions to share part of their bonus with the rest of the workforce, which numbered around 100 people, as they believed in rewarding their dedicated team.
After the acquisition, Unknown Worlds continued to enhance Subnautica and Below Zero. In February 2024, they released Moonbreaker, a turn-based strategy game that struggled due to its initial microtransaction system. The studio then directed its efforts toward Subnautica 2, officially announcing the game in October 2024 with a planned early access launch in 2025. The game quickly became the second-most wishlisted title on Steam, trailing only behind Hollow Knight: Silksong.
The first indications of discord between Unknown Worlds and Krafton emerged on July 2, when Krafton unexpectedly fired Cleveland, Gill, and McGuire, replacing them with Steve Papoutsis, formerly of Callisto Protocol. Krafton did not provide a clear rationale for this leadership change, merely stating in a press release that they wished the original creators well on their future endeavors.
On July 9, Krafton officially announced the delay of Subnautica 2's early access launch to 2026. This delay raised significant concerns regarding the performance-based bonus agreement, suggesting that the timeline would hinder Unknown Worlds' ability to achieve its goals. Krafton later accused the former leaders of abandoning the studio for personal creative projects, specifically targeting Cleveland's film production efforts. Cleveland, in response, expressed his disappointment in a blog post and emphasized that he believed the game was ready for release.
On July 10, Cleveland and his fellow ousted studio heads filed a lawsuit against Krafton, asserting that the company's actions were aimed at avoiding the bonus payments tied to Subnautica 2. The lawsuit claims that Krafton illegally terminated their positions and delayed the game to escape their financial obligations. As tensions escalated, Krafton attempted to extend the bonus payment window and advance a portion of a profit-sharing bonus pool for all Unknown Worlds employees in 2025, seemingly to counter the allegations made in the lawsuit.
The core of the conflict revolves around whether Subnautica 2 is indeed ready for an early access launch. The stakes are high, as a potential $250 million bonus payment hangs in the balance. Cleveland, Gill, and McGuire argue that they intended to share their bonuses with their dedicated team, and they seek reinstatement as heads of Unknown Worlds alongside the full bonus payment without delays.
As this intricate saga unfolds, all parties involved claim to prioritize the best interests of Subnautica 2 and its player base. The truth may lie somewhere between artistic integrity and the pursuit of financial gain. Ultimately, the court system will play a crucial role in determining accountability in this complex situation.
For further updates on Subnautica 2 and the ongoing developments involving Krafton and Unknown Worlds, stay tuned.
