Krafton responds to leadership shifts at Unknown Worlds as former executives initiate legal action against the publisher

Krafton recently announced changes in leadership at the developer, Unknown Worlds. The company stated that previous executives had "abandoned their responsibilities." This assertion was made through a statement shared on Krafton's website, explaining that inconsistencies in leadership direction were a contributing factor to a significant delay in the release of Subnautica 2, now slated for 2026.

The game's early access launch was initially expected in 2024, but recent developments have altered this timeline. Krafton reportedly urged Charlie Cleveland and Max McGuire to reassume their roles as game director and technical director. However, proposals were declined, with Cleveland opting to pursue a personal film project instead of continuing with Subnautica 2 following the unsuccessful launch of Moonbreaker.

Krafton expressed dissatisfaction, noting that these leadership absences prompted project disruptions. Despite the setbacks, Krafton asserts its commitment to delivering high-quality gaming experiences and justify its decision to reorganize the leadership team.

The matter also involves a significant financial component, with a $250 million earn-out arrangement mentioned in a purchase agreement reviewed by Bloomberg. It was alleged that the former executives had intentions of distributing this amount among team members. However, Krafton stated that about 90% of this earn-out was initially allocated to the three key executives under the assumption that they would lead and participate actively in Subnautica 2's development.

Krafton reassured that fair compensation is being provided to the dedicated employees who remain involved in the game's development, recognizing their contributions to the ongoing progress of the Subnautica series.

In response, Charlie Cleveland confirmed a legal action against Krafton. He communicated on Reddit, describing the situation as extraordinary and unintended. He maintained that Subnautica 2 is prepared for its initially scheduled early access, despite Krafton's announced postponement.

He affirmed that the legal proceedings would bring more transparency to the public, emphasizing the necessity to correct the situation. Cleveland underscored his lifelong dedication to Subnautica and his team, ensuring that they've always shared earnings with their team and plan to continue this practice with the earn-out.