Subnautica 2 Legal Battle: Unknown Worlds Founders Sue Krafton Over Alleged $250M Earnout Evasion

Unveiling the Deep-Sea Discord: A Legal Battle Ensues

The Genesis of the Conflict: A Lucrative Earnout at Stake

The founders of Unknown Worlds, the studio behind the acclaimed Subnautica series, have initiated legal proceedings against their publisher, Krafton. Their core allegation centers on a claim that Krafton deliberately obstructed the release of Subnautica 2. This alleged strategic delay, they contend, was a calculated maneuver to avoid triggering a substantial $250 million earnout clause that would have benefited the studio's original owners and employees. This legal action escalates a previously simmering tension, revealing the intricate financial dynamics at play within the gaming industry.

Publisher's Perceived Predicament: Success as a Problem?

While the original Subnautica achieved significant success, and its sequel, Subnautica 2, boasts impressive pre-release indicators with millions of wishlists, the lawsuit suggests that this very success posed a dilemma for Krafton. According to the court documents, Krafton's CEO reportedly expressed concerns that an early access launch within the initially planned 2025 timeframe would be financially detrimental to the publishing giant, implying that the earnout payment was a significant factor in their strategic decisions.

Allegations of Deliberate Delay and Managerial Interference

The legal filing details a "months-long campaign" by Krafton, commencing in mid-April, purportedly designed to impede Subnautica 2's progress and sidestep the earnout. This included reassigning the project to a new, non-English-speaking publishing team in Korea and withdrawing crucial development resources. These cutbacks, which reportedly impacted asset creation, localization, and marketing support, hint at a concerted effort to disrupt the game's momentum. Notably, a planned feature for a prominent gaming publication was among the casualties of these alleged actions.

Erosion of Trust: Public Statements and Executive Action

The lawsuit further accuses Krafton of undermining Unknown Worlds' relationship with its dedicated fanbase. It asserts that Krafton seized control of the studio's official websites and disseminated a public statement that, without the founders' consultation or approval, apologized for development delays and implicitly blamed the former leadership. This, coupled with alleged "intimidation tactics" in June to pressure the founders into accepting a reduced payout, ultimately culminated in Krafton taking complete operational control of Unknown Worlds and terminating its founders, exacerbating the already strained relationship.

Breach of Contract and Demand for Restitution

The Unknown Worlds founders assert that Krafton's actions represent a fundamental breach of their 2021 Equity Purchase Agreement. They argue that Krafton violated promises regarding creative and operational autonomy, failed to consult on actions that could impact the earnout, acted with the primary intent of frustrating the earnout, and unjustly terminated their positions. Consequently, the founders are seeking the full $250 million earnout, along with interest and legal expenses. Furthermore, they demand reinstatement to their former roles and the restoration of Unknown Worlds' operational independence, reflecting a desire to reclaim both financial compensation and creative sovereignty over their creation.