Subnautica 2 publisher Krafton has filed its answer to a complaint by Unknown Worlds cofounders alleging breach of contract. It accuses Charles Cleveland, Adam “Max” McGuire, and Edward “Ted” Gill of prioritizing a $250 million payout over the successful launch of the second-most-wishlisted game on Steam. The company said the veteran developers were fired “to prevent {them] from permanently damaging Unknown Worlds’ most valuable IP, the company itself, and its goodwill with its fans.”
In a lawsuit filed last month, the cofounders claimed Krafton tried to sabotage Subnautica 2‘s planned Early Access launch this year to avoid paying a $250 million bonus it had agreed to at the time Unknown Worlds was sold if the studio hit certain revenue targets in 2025 and early 2026. The legal complaint alleged that Krafton violated the terms of the deal by overriding the studio’s independence and firing the cofounders without cause.
In its response filed on August 12, Krafton denies most of the allegations in the original complaint and argues that it was the cofounders who were trying to rush Subnautica 2 out into the wild despite being behind on its expected content scope. When the company tried to enlist the cofounders, who were not directly involved in the game’s development, to get it back on track, it says it was rebuffed. Krafton claims it had no choice but to remove them from the studio in order to protect Subnautica 2 and prevent a disastrous launch.
According to Krafton’s response, a development director at Unknown Worlds told Gill in 2023 that “folks think…Max and Charlie are checked out as studio heads and are confused as to why.” It accuses the cofounders of being more involved in passion projects than in getting Subnautica 2—which suffered delays throughout 2024—ready to ship.
“Krafton was not willing to take the risk of the resulting damage to the Subnautica franchise and the Company’s long-term reputation–a risk that, if materialized, would be irreversible, as shown with Kerbal Space Program 2,” the filing reads. “As Unknown Worlds’ sole stockholder, Krafton had invested $500 million in the success of not only Subnautica 2, but also Subnautica 3, Subnautica 4, and any other future Subnautica franchise product.”
Subnautica 2 is currently scheduled to arrive sometime in 2026 and Krafton has promised bonus payouts to the remaining staff at Unknown Worlds despite the delay. Many fans on the subreddit, initially incensed by the sudden upheaval at the studio, have sounded increasingly burnt out on the back-and-forth volleys of accusations. At the rate at which most legal battles unfold, they’ll likely be playing the sequel long before the $250 million dispute is settled.
“We believe the facts speak for themselves,” Krafton wrote in a statement today. “This answer reflects our commitment to protecting both the Subnautica IP and the global community that has supported it for years.”
