Delaware: Krafton Inc. has accused the former leadership of its U.S. subsidiary, Unknown Worlds, of negligence in the development of the highly anticipated survival game Subnautica 2. This accusation has led to a legal confrontation in the United States, company officials announced on Thursday.
According to Yonhap News Agency, Krafton's Chief Executive Officer Kim Chang-han made the claim during the second day of a trial at the Delaware Court of Chancery. Kim alleged that Unknown Worlds co-founders Charlie Cleveland and Max McGuire, who were instrumental in the development of Subnautica 2, had ceased working on the project. He stated that despite requests for them to return to their roles as game developer and technical director, they refused, prompting Krafton to reclaim operational control.
Krafton acquired Unknown Worlds in October 2021 to expand its portfolio beyond its well-known shooter, PUBG: Battlegrounds. At that time, Krafton praised Unknown Worlds for its popular intellectual properties and community-focused gameplay, particularly the underwater survival game Subnautica. However, earlier this year, Krafton removed the co-founders and CEO Ted Gill, attributing their dismissal to poor leadership and delays in Subnautica 2's development.
In retaliation, the former leaders of Unknown Worlds filed a lawsuit against Krafton, accusing the company of breaching contract terms by employing "pressure tactics" to delay the game and avoid a $250 million bonus payment, known as earnout. Kim denied these allegations, stating that the dismissals were not related to financial incentives. He maintained that the earnout was part of the agreement and would remain unchanged if the conditions for payment were met.
Kim further claimed that the former executives sought an additional $1 billion in emotional distress and damages, referencing Cleveland's personal notes. During the trial, however, the plaintiffs accused Krafton of disrupting their development efforts by allegedly forming a secret task force to prevent the bonus linked to an early access launch, as reported by U.S. news outlet Game Developer.