KRAFTON confirmed the authenticity of leaked internal documents regarding Subnautica 2 development on July 13, escalating a public dispute with Unknown Worlds Entertainment. The gaming company dismissed three co-founders Charlie Cleveland, Ted Gill, and Max McGuire on July 2 after the underwater survival game missed its planned June 2025 early access launch. KRAFTON appointed former Striking Distance Studios executive Steve Papoutsis as replacement leadership. The terminated founders subsequently filed a breach of contract lawsuit against their former parent company. Bloomberg reported that delays could jeopardize a $250 million performance bonus tied to revenue targets by year-end 2025.
Cleveland publicly stated that Subnautica 2 was prepared for early access release before his dismissal. KRAFTON disputed this assessment and accused the co-founders of abandoning their responsibilities while Cleveland allegedly prioritized personal film projects. The leaked milestone review documents revealed that KRAFTON considered the game below required polish standards for market impact. Content originally planned for early access had been removed from the development timeline. The documents stated that reassessment of release schedules became necessary due to gaps between current progress and initial planning assumptions.
KRAFTON maintains that player experience drives all development decisions and that transparency guides communication efforts. The company emphasized that milestone reviews occur regularly across all studio projects to ensure quality standards. Legal proceedings between the parties continue as both sides present conflicting narratives about development readiness and contractual obligations. The controversy highlights tensions between creative independence and corporate oversight in game development partnerships.
Cleveland publicly stated that Subnautica 2 was prepared for early access release before his dismissal. KRAFTON disputed this assessment and accused the co-founders of abandoning their responsibilities while Cleveland allegedly prioritized personal film projects. The leaked milestone review documents revealed that KRAFTON considered the game below required polish standards for market impact. Content originally planned for early access had been removed from the development timeline. The documents stated that reassessment of release schedules became necessary due to gaps between current progress and initial planning assumptions.
KRAFTON maintains that player experience drives all development decisions and that transparency guides communication efforts. The company emphasized that milestone reviews occur regularly across all studio projects to ensure quality standards. Legal proceedings between the parties continue as both sides present conflicting narratives about development readiness and contractual obligations. The controversy highlights tensions between creative independence and corporate oversight in game development partnerships.
