Subnautica 2 Creators Sue Krafton Over Defamation Claims

The escalating conflict between the creators of Subnautica 2 and its publisher, Krafton, has taken a legal turn. Former Unknown Worlds executives Charlie Cleveland, Max McGuire, and Ted Gill have officially filed a lawsuit against Krafton amid allegations of defamation and financial misconduct.

🎮 From Game Devs to Courtroom Drama

Earlier this year, Krafton abruptly removed the original leadership team from the development of Subnautica 2. This surprise move drew criticism and suspicion—particularly as reports emerged that the firings may have been an attempt to avoid paying out a $250 million earnout bonus.

In a statement responding to the growing controversy, Krafton accused Cleveland and McGuire of nonfeasance—the failure to fulfill official duties—and claimed that the trio had intended to keep 90% of the bonus funds for themselves instead of sharing them with the rest of the studio team.

🧑‍⚖️ Cleveland Responds with Legal Action

In response, Subnautica creator Charlie Cleveland took to social media to announce a lawsuit. He called Krafton’s allegations “totally untrue”, citing a long history of profit-sharing with the development team—even during the acquisition of Unknown Worlds by Krafton.

“The idea that Max, Ted, and I wanted to keep [the earnout] all for ourselves is totally untrue,” Cleveland wrote in a public statement on X (formerly Twitter).

He added that the team had always acted in the best interest of the developers and are now pursuing legal action not only to dispute the claims but also potentially to seek damages for defamation.

💥 What’s Really at Stake?

The stakes are high for both parties. Krafton risks damaging its reputation within the development community, while the former Unknown Worlds leaders are fighting to defend their legacy and reputations. Fans of Subnautica 2 are understandably concerned, as the dispute could delay the game’s development—or alter its creative direction entirely.

Krafton, in its statement, maintained that its leadership decisions were made in good faith and in the best interests of the studio. However, the publisher did not address Cleveland’s claims directly nor the lawsuit’s specific demands.

🌊 The Future of Subnautica 2

This legal battle adds another layer of uncertainty to Subnautica 2, a game already surrounded by controversy following its shift toward a live-service model. While current development continues under new leadership, questions remain about whether the finished product will reflect the original vision of its creators.

For now, the gaming community watches closely as this high-profile legal battle unfolds—one that could set a precedent for how publisher-founder conflicts are handled in the industry.