Ex-Subnautica 2 Chiefs: Krafton Fired Us to Dodge $250M Bonus

The conflict intensifies in the ongoing dispute between the former leadership of Subnautica 2 studio Unknown Worlds and its parent company Krafton. In a recent lawsuit, the studio's founders allege that Krafton deliberately obstructed Subnautica 2's development, delayed the game’s release, and ultimately dismissed them after learning it might owe employees a $250 million bonus if the game launched on schedule.

According to a newly-unsealed complaint reported by Bloomberg and shared by Aftermath, former Unknown Worlds CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire state that their relationship with Krafton, along with the game's progress, was smooth until early 2025. At that point, the leadership presented updated revenue forecasts suggesting Subnautica 2 would outperform initial expectations. They also attempted to negotiate bonus eligibility for newer developers not yet included in the incentive plan.

The ex-leaders claim that upon learning this, Krafton began advocating for a delay. Allegedly, the company scrutinized contracts seeking legal justification to enforce a postponement, despite the agreement granting Unknown Worlds final say. They assert that Krafton took deliberate steps to make a timely release difficult or unfeasible. This included feedback that the game was unprepared for early access, withdrawal of marketing assets, and refusal to fulfill certain pre-launch obligations. Ultimately, this led to the founders' termination earlier this month and the official delay of Subnautica 2.

Although Krafton has since extended the bonus period for remaining employees to qualify for payouts if targets are met, the company contends that the former leadership was entitled to 90% of the bonuses. This would cap Krafton's maximum payout at $25 million, not $250 million, if goals are achieved.

The founders' lawsuit accuses Krafton of breaching the contract and seeks full payment of the promised bonus, along with damages and additional costs.

The controversy surrounding Subnautica 2 erupted earlier this month when Krafton abruptly announced it was replacing the three founders with former Striking Distance CEO Steve Papoutsis, effective immediately. Gill, Cleveland, and McGuire described this move as a "shock." In subsequent weeks, reports surfaced about the $250 million staff bonus, while Krafton accused the former leaders of neglecting their responsibilities and claimed Subnautica 2 was not fit for launch. Specifically, Krafton alleged that Cleveland was instructed to cease work on a personal project and focus on studio duties. The lawsuit, filed last week, refutes this, stating the project was a Subnautica film developed at Krafton's explicit request.

The readiness of Subnautica 2 remains unclear. Leaked documents, verified by Krafton, confirm that Unknown Worlds received publisher feedback indicating the game was not ready for early access. However, a Bloomberg report citing project developers, along with the founders' lawsuit, suggests the game was in solid condition.