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Subnautica 2 Founders Sue Krafton, Allege Delay Aimed at Denying $250M Earnout

Krafton extended bonus deadlines into 2026, advancing partial payouts to developers, as its ousted co-founders allege the publisher delayed Subnautica 2 to evade a $250 million earnout

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Scuba diver in Subnautica 2
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Overview

  • Charlie Cleveland, Ted Gill and Max McGuire filed a breach of contract suit on July 16 in Delaware Chancery Court, claiming Krafton intentionally stalled Subnautica 2’s early access launch to avoid triggering a $250 million earnout.
  • In early July, Krafton replaced Unknown Worlds’ executive team with Steve Papoutsis and pushed the sequel’s planned 2025 release into early access 2026, citing concerns over leadership and game readiness.
  • Bloomberg reporting confirms Krafton has moved earnout targets to the end of 2026 and will advance a portion of profit-sharing bonuses to about 40 remaining developers.
  • The lawsuit cites leaked May milestone reviews and alleged publisher actions—such as pulling marketing assets and halting prelaunch support—as part of a months-long effort to frustrate the earnout.
  • In a July 17 statement, Krafton reaffirmed its “fan-centric mindset” and pledged to uphold community trust despite the legal dispute with its former leadership team.