Subnautica Developer Co-Founder Announces Lawsuit Against Krafton

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Due to the recent controversy surrounding the developers of Subnautica 2, Unknown Worlds Entertainment, and their publisher Krafton, the original Subnautica’s director and co-founder, Charlie Cleveland, has declared his intention to take legal steps against the publishing company.

On social media platform X, Cleveland expressed his thoughts on Krafton’s remarks concerning the lack of key leadership in the development of Subnautica 2. He emphasized the significant impact that the original Subnautica, which he and his studio co-founders Ted Gill and Max McGuire have been associated with, has had on him personally.

Cleveland announced that we’ve initiated a lawsuit against Krafton, which means details (mostly) will surface eventually for your understanding. It wasn’t part of my plan to take legal action against such a massive corporation, but I feel compelled to rectify the situation. Subnautica, being my life’s creation, is precious to me and I couldn’t just walk away from it or the dedicated team that has invested their passion into it.

In his article, Cleveland mentioned that Subnautica 2 is now prepared for an Early Access launch, and he emphasized that Krafton’s claim regarding their three founding members being no longer with the company is completely false.

In a recent statement, I want to clear up a misunderstanding about the earnout: we never intended to hoard it for ourselves. My passion for this industry runs deeper than any personal wealth, and I’ve always shared profits with my team as a way of showing appreciation. When we sold the studio, this practice continued, and it will continue now too. The team has worked tirelessly to bring this fantastic game to you, and they truly deserve their bonus/earnout for their efforts.

As a devoted fan, I can tell you that Cleveland expressed it as an unusual period for the team who’ve put in countless hours honing Subnautica 2. In his own words, “This isn’t what we envisioned. But the overwhelming support we’ve received has touched us deeply, particularly at this time.

As a gamer, I’ve just learned about Cleveland’s latest update, hot on the heels of Krafton’s statement concerning Subnautica 2 and Unknown Worlds. The publisher disclosed that a large chunk of the $500 million they spent buying the studio was reserved as earn-out compensation – a whopping $250 million! Out of this, an impressive 90% was earmarked for the three masterminds who founded the studio.

In their statement, Krafton expressed deep disappointment over the past leaders’ behavior, and more than anything, they felt an intense feeling of being let down or deceived due to the leaders’ inability to uphold the faith that their fans had entrusted them with.

Krafton’s statement was a reaction to Unknown Worlds discussing the delay of Subnautica 2 until 2026 this week. Unknown Worlds mentioned they received “valuable input” from playtests, and expressed that they felt they were moving in the right direction with the project.

The team behind Subnautica 2 decided to postpone the Early Access release in order to gather and address more player feedback before making the game available for early play.

When it comes out in 2026, Subnautica 2 will be available on PC and Xbox Series X/S.

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2025-07-11 18:41