Subnautica 2 Legal Battle Takes Another Turn as Krafton Faces New Claims

Image via Unknown Worlds Entertainment

The legal drama surrounding Subnautica 2 has escalated with publisher Krafton now facing new allegations just days after a major court ruling.

Earlier this week, the Delaware Court of Chancery ordered Ted Gill's reinstatement as CEO of Unknown Worlds, the studio behind Subnautica 2. The decision followed months of disagreement between Krafton and the studio's original leadership, which included co-founders Charlie Cleveland and Max McGuire, who were ousted last year. As part of the decision, Gill was given complete control over the game's Early Access launch, while Krafton was told not to interfere.

However, almost immediately following the decision, a new controversy appeared. According to a message from Steve Papoutsis, who led the studio under Krafton, Subnautica 2 will be available in Early Access in May. While it seemed like a routine update, it has now become a major source of contention.

Gill's legal team claims that following the court order, Papoutsis no longer had the authority to communicate or make any decisions regarding the game's release. They claim the announcement directly contradicts the ruling and undermines Gill's role, while also confusing developers and fans about who is in charge.

Image via Unknown Worlds Entertainment

The situation increases by an ongoing dispute over a reported $250 million bonus linked to the game's commercial success. The original leadership has claimed that Krafton previously attempted to delay the game in order to avoid meeting the targets required for the payout. The court has since extended the bonus eligibility period, but tensions remain high.

Lawyers for Gill have also suggested that the way the May release date was announced without a major marketing push could affect early sales momentum, raising additional concerns about intent.

However, Krafton has denied all wrongdoing. According to the company, the message was intended to acknowledge a previous development milestone rather than to override Gill's authority. It also states that Gill is free to assess the game's readiness and make the final decision on when it will launch.

Subnautica 2 is still expected to be released in Early Access, possibly in May, but the timeline is uncertain due to the ongoing legal battle.