Subnautica 2 is abandoned by Krafton: this is the drama behind what could be the independent game of the year

All games are a miracle. The development of a video game is a very long process that involves a lot of people who need to row in the same direction and it is difficult for it to go well. But some are more miraculous than others. Because for every project that goes out without any notable incidents that warrant being made public, there is at least another that never even sees the light of day. And then there is the case of Subnautica 2. A rare bird where, after signing a tremendous success, it seemed that everything was going well, until news started to come out without […]

All games are a miracle. The development of a video game is a very long process that involves many people who need to row in the same direction, and it is difficult for it to go well. But some are more miraculous than others. Because for every project that comes out without any notable incidents that warrant public attention, there is at least one other that never even sees the light of day.

And then there is the case of Subnautica 2. A rare bird where, after signing a tremendous success, it seemed that everything was going well, until endless news started to emerge about the disaster of its development. Followed by lawsuits, negligent uses of AI, and truly surreal stories about its development. All while it is discovered that it is the game on the most wishlists on Steam, making it a serious candidate to hold its own even against GTA6. But what is its story? That’s what we are going to talk about today.

A little context

To understand everything else, we first need to understand where the first Subnautica comes from. An adventure and survival game with action elements where we embody the only survivor of a space expedition on an entirely oceanic alien planet. With no way to escape from there, we will have to do the only thing we can do: catalog the flora and fauna of the place, find resources to survive, and look for a way to escape the planet by diving through its vast oceans.

Inspired by Minecraft, but with a strong emphasis on the underwater aspect, the game was a modest critical success. Released in January 2018, it seemed like it was going to be a title that wouldn’t go unnoticed, winning the award for best PC game of the year at the Golden Joystick Awards, but it also wouldn’t be revolutionary. But players thought otherwise. Selling over 5 million copies in less than two years.

With these excellent numbers, they decided to release an early access sequel in January 2019, Subnautica: Below Zero. And although the critics did not respond enthusiastically, seeing it as excessively continuist, the game has ended up finding its audience. Today considered a spinoff, it would lead to a true sequel, Subnautica 2. In addition to the initial problems of its studio, Unknown Worlds Entertainment.

Huge Problems

In October 2021, Krafton, the Korean multinational, acquires Unknown Worlds Entertainment after the success of Subnautica. For a few years, there is hardly any new or relevant information. Subnautica: Below Zero leaves early access on May 14, 2021, but for a while, they continue to not announce their next project. Until on April 7, 2022, they confirm from Unknown Worlds Entertainment that they are working on “the new game in the Subnautica universe”.

The information will not be fluid or constant from this point on. The next thing we will know will be in November 2023, when Krafton, at its shareholders’ meeting, states that its intention is to launch the game sometime in 2025. On February 8, 2024, during another shareholders’ meeting, they reveal more details, stating that it will be a multiplayer game as a service, which causes Subnautica fans to strongly oppose the project. In response, the studio claims that “there will be no season passes, battle passes, or subscriptions.”

But problems arose in 2025. In July of that year, Krafton announced that the founders of Unknown Worlds, Charlie Cleveland and Max McGuire, and the company’s CEO, Ted Gill, had left the company and were replaced by Steve Papoutsis, CEO of Striking Distance Studios. Moving the game’s release to 2026, they did not provide further explanations about what was behind that moment. Until a journalist decided to investigate.

Jason Schreier, an investigative journalist specializing in the video game industry, discovered that they did not leave, but were fired. What was the reason? If Subnautica 2 reached early access status on time, during the year 2025, Krafton would have to pay Unknown Worlds a bonus of 250 million dollars. According to Cleveland and McGuire, the game was ready to be launched in early access throughout the year. That’s why they were fired. To avoid having to pay the bonus.

Of Trials and AIs

All of this led to Cleveland and McGuire suing Krafton. This is when everything behind the scenes started to come to light. Krafton’s legal defense was that the game did not have enough material to “drive the growth and expansion of the IP,” needing to create 30% more content. And they made this known to Unknown Worlds. The problem, in Krafton’s eyes, is that Cleveland and McGuire were only focused on the $250 million bonus, offering an unpolished product, which led Krafton to decide to delay its release, saving them $250 million, “to protect the interests of the game’s fans.” This was something Unknown Worlds refused, which led Krafton to replace its founders and its CEO.

This could have been upheld in a trial were it not for an important detail. There were 250 million at stake. And the CEO of Krafton himself stated in writing that he wanted to do whatever it took to avoid paying them.

In one of the most surreal twists in the recent history of the video game industry, the trial revealed all the conversations about Chang-han Kim’s attempt, the CEO of Krafton, to avoid paying those 250 million. First, he consulted his lawyers who told him the obvious: there is no legal way to avoid paying them. They have a contract. It is binding. If they comply, he must pay. But since the answer was not satisfactory to him, he did what all executives in the world currently do when they want to hear the answer they want: he consulted ChatGPT. And ChatGPT, after insisting that there had to be a way to avoid paying them, told him that he could always replace them. And that’s what he did.

With the records being read in court, that was enough for Krafton to lose the lawsuit. It was demonstrated beyond any doubt that they had made a business decision not to fulfill a legal contract, the judge in the case, in March 2026, reinstated Cleveland and McGuire at the studio and Gill as CEO of Unknown Worlds and gave him control over the early access launch, extending the date associated with the bonus until September 2026.

After all this, on April 7 of this year, Krafton has completely distanced itself from the project. Unknown Worlds is the distributor and publisher of the game. Does that mean they won’t have to pay the 250 million anymore, in exchange for granting them the studio’s freedom? It seems most likely, but we still don’t know for sure. What does seem certain is that Subnautica 2 will be released in early access this year. And it has everything to be a hit. Because it certainly hasn’t lacked publicity.

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The CEO of Krafton admits that he fired the leaders of one of his studios because AI suggested it to him

The legal conflict between Krafton and the former executives of the studio Unknown Worlds, responsible for the development of Subnautica 2, has escalated in recent weeks, creating an atmosphere of uncertainty regarding the future of the anticipated title. Since July, both parties have filed legal actions, and the accusations have ranged from wrongful termination to mismanagement of the project. A CEO replaceable by a machine The former executives, including Subnautica designer and director Charlie Cleveland, CEO Ted Gill, and co-founder Max McGuire, allege that Krafton is trying to avoid paying bonuses stipulated in the acquisition contract of the […]

The legal conflict between Krafton and the former executives of the studio Unknown Worlds, responsible for the development of Subnautica 2, has escalated in recent weeks, creating an atmosphere of uncertainty regarding the future of the highly anticipated title. Since July, both parties have filed legal actions, and the accusations have ranged from wrongful termination to mismanagement of the project.

A CEO Replaceable by a Machine

The former executives, including Subnautica designer and director Charlie Cleveland, CEO Ted Gill, and co-founder Max McGuire, allege that Krafton is trying to avoid paying bonuses stipulated in the studio’s acquisition contract. In a document filed by their lawyers, it is stated that Krafton’s CEO, Changham Kim, was “desperate” not to have to make these payments, fearing it would cause him “professional embarrassment” by appearing to have overpaid for the studio.

The case becomes even more complicated with the revelation that Krafton allegedly consulted with artificial intelligence, specifically ChatGPT, in an attempt to find ways to evade payments. According to the court document, even the AI suggested that it would be complicated to avoid the earnout payment. However, Krafton dismisses these claims and accuses former executives of having destroyed relevant evidence.

The dispute between the parties has led to a significant delay in the launch of Subnautica 2, which is now scheduled to enter early access in 2026. Krafton, in an attempt to manage the situation, has implemented “Project X,” which seeks to negotiate with the founders or take control of the studio.

This situation raises questions about Krafton’s business ethics, especially considering its recent self-designation as an “AI company”. Meanwhile, the future of the anticipated game remains uncertain.

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Krafton accuses the former developers of Subnautica 2 of wanting to release the unfinished game to make 250 million dollars

Krafton has filed a lawsuit against the former leaders of Unknown Worlds, Charlie Cleveland, Ted Gill, and Max McGuire, accusing them of attempting to launch an incomplete version of Subnautica 2 to secure a multimillion-dollar payment of 250 million dollars. This move comes amid a growing conflict over the game’s development, which was originally scheduled to be released in Early Access in the first quarter of 2024. A good reason to launch a game that lacks adjustments In the counterclaim, Krafton argues that the lack of material for an early release was the cause of the delay and […]

Krafton has filed a lawsuit against former leaders of Unknown Worlds, Charlie Cleveland, Ted Gill, and Max McGuire, accusing them of attempting to launch an incomplete version of Subnautica 2 to secure a multimillion-dollar payment of 250 million dollars. This move comes amid a growing conflict over the game’s development, which was originally scheduled to be released in Early Access in the first quarter of 2024.

A good reason to launch a game that needs adjustments

In the counterclaim, Krafton argues that the lack of material for an early release was the cause of the delay and asserts that Cleveland and McGuire abandoned their responsibilities to focus on personal projects, negatively affecting the game’s development. Krafton alleges that Gill was more interested in getting paid than in the project’s success, which caused significant disorganization.

The new CEO of Unknown Worlds, Steve Papoutsis, has stated that the leadership restructuring aims for a commitment to players and a robust creative process, emphasizing that the priority is to ensure that the game meets expectations at the time of its launch. In contrast, Krafton argues that the former leaders showed an excessive focus on their payments, which led to a series of decisions that compromise the quality of the game.

The CEO of Krafton has stated that Cleveland, Gill, and McGuire’s focus was on securing their compensation rather than developing a title that honored the success of its predecessor. With 500 million dollars invested in the acquisition of Unknown Worlds, the company argues that the actions of the former leaders not only threatened the future of Subnautica 2, but also of future installments of the franchise.

The conflict continues to evolve, and there may be much more drama ahead in this legal battle between Krafton and its former employees.

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Former developers of Subnautica 2 sue Krafton after their recent dismissal

The controversy behind the development of Subnautica 2 has recently escalated, becoming one of the most intriguing stories of the month in the gaming world. This is due to the criticisms launched by Krafton against the former leaders of Unknown Worlds, which has led co-founders Charlie Cleveland and Max McGuire, as well as former CEO Ted Gill, to file a lawsuit against the company. Cleveland announced this legal action through Reddit, emphasizing that he has no intention of abandoning the development of Subnautica 2, a project he considers his life’s work. A lawsuit with a […]

The controversy behind the development of Subnautica 2 has recently escalated, becoming one of the most intriguing stories of the month in the gaming world. This is due to the criticisms launched by Krafton against the former leaders of Unknown Worlds, which has led co-founders Charlie Cleveland and Max McGuire, as well as former CEO Ted Gill, to file a lawsuit against the company. Cleveland announced this legal action via Reddit, emphasizing that he has no intention of abandoning the development of Subnautica 2, a project he considers his life’s work.

A lawsuit with a million-dollar context

The lawsuit arises in a complicated context, as Krafton had planned a bonus of 250 million dollars for Unknown Worlds, contingent on certain financial results expected to be achieved in 2025. This bonus could be seriously affected by the delay in the release of Subnautica 2, scheduled for 2026 on Xbox Series X|S and PC. Cleveland has responded to Krafton’s accusations, which claimed that he and his team had abandoned their responsibilities during the game’s development.

In his response, Cleveland stated: “The idea that Max, Ted, and I wanted to keep the bonus for ourselves is completely inaccurate. I am in this industry because I love it, not for the riches.” He also reiterated his commitment to sharing the profits with the team, as they have done in the past, demonstrating that the intention to fulfill the corresponding bonus remains.

Meanwhile, Krafton has been the target of criticism, as its announcement of the game’s delay was met with numerous negative comments and calls to boycott the launch. The situation raises questions about the future of Subnautica 2 and the internal dynamics of Unknown Worlds, leading many to speculate about the long-term repercussions in the industry.

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Subnautica 2 is delayed after the dismissal of its entire board of directors less than a week ago

The anticipated sequel to Subnautica, titled Subnautica 2, has been delayed until 2026 with the aim of improving the content before its release. Krafton, the publishing company, confirmed the news today, indicating that there is still no specific date for the game’s early access. The decision comes amid significant changes in the direction of Unknown Worlds, the developing studio, including the firing of key leaders, which has raised concerns in the community. On the website, they deny the major issue about something they themselves claimed According to a statement published on the official site […]

The highly anticipated sequel to Subnautica, titled Subnautica 2, has been delayed until 2026 with the aim of improving the content before its release. Krafton, the publishing company, confirmed the news today, stating that there is still no specific date for the game’s early access. The decision comes amid significant changes in the direction of Unknown Worlds, the developing studio, including the firing of key leaders, which has raised concerns in the community.

On the website, they deny the main point about something they themselves claimed

According to a statement published on the official Unknown Worlds website, the reason for the delay is simply the desire to add more content before the game is released in early access. “Nothing is changing in the direction of the game or in the team behind it,” the developers assured. Despite the positive feedback received during playtests, areas were identified that needed improvement before the launch.

This announcement has come after the controversy surrounding the dismissal of several members of the leadership of Unknown Worlds. Charlie Cleveland, co-founder and former game director, commented that the game was ready for early access, contradicting the official information released after its exit. Increasing tensions, reports suggest that Krafton may have made this decision just before a $250 million payment that was due to the studio, although the company denies that the delay is related to financial or contractual reasons.

In an attempt to calm fans, Krafton has shared a gameplay teaser showcasing new features and underwater exploration. Subnautica 2 promises to be a single-player experience, with no subscriptions, loot boxes, or battle passes, which could reassure fans concerned about the direction of the game amid this internal uncertainty.

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Subnautica 2 suffers a major setback by replacing the developers of the original game

Unknown Worlds, the developer of Subnautica 2, has announced a significant change in its leadership with the arrival of Steve Papoutsis as the new CEO, replacing Charlie Cleveland, Ted Gill, and Max McGuire, who will no longer be involved in the development of the game. Krafton, the parent company of Unknown Worlds, revealed that this change is effective immediately, although it is unclear whether the separations were voluntary. A change that raises questions about the direction of the game Despite these changes, Krafton has reiterated its commitment to delivering a Subnautica 2 that meets players’ expectations. In a statement, […]

A change that calls into question the direction of the game

Despite these changes, Krafton has reiterated its commitment to delivering a Subnautica 2 that meets players’ expectations. In a statement, Krafton CEO CH Kim emphasized that “nothing is more important than the player experience” and that the team is focused on delivering the best game possible as soon as possible. Papoutsis, who has extensive experience in the video game industry, has worked on well-known franchises such as Dead Space and The Callisto Protocol, and will now take on the creative direction of Striking Distance’s Sustractación and Unknown Worlds.

Papoutsis expressed his enthusiasm for his new role and emphasized that “the player’s experience is our North Star.” He and his team are committed to delivering an experience that satisfies the Subnautica community. However, this leadership change at an advanced stage of development may suggest issues or conflicts regarding the creative direction of the game.

The design of Subnautica 2 keeps its promise of an early access release in 2025, although a specific date has not yet been set. Last April, the game’s design lead, Anthony Gallego, reaffirmed the commitment to this date, leaving fans eager but cautious after the recent restructuring. The situation is particularly unusual and could indicate challenges in the production of the highly anticipated title.

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