The ouster of Unknown Worlds founders Charlie Cleveland and Max McGuire—together with now-former CEO Ted Gill—is quickly escalating in a collection of dramatic twists and turns. Since final week, Cleveland and Krafton have been taking photographs at each other in statements to the general public, with the founder and his friends now submitting a lawsuit towards the corporate that purchased their studio.
The escalation started on July 10, 2025 with a press release from Krafton addressed to the Subnautica participant group the place the corporate accused Cleveland, McGuire, and Gill of “abandoning the tasks” concerned with growing Subnautica 2. “Krafton made a number of requests to Charlie and Max to renew their roles as recreation dame director and technical director…however each declined to take action,” the corporate wrote. It then described the monetary efficiency of Unknown Worlds’ tabletop-inspired multiplayer recreation Moonbreaker a “failure,” and accused Cleveland of specializing in a “private movie mission” as a substitute (Cleveland did submit 7 months in the past on Reddit about making a movie referred to as A Christmas Letter).
This assertion adopted a report from Bloomberg on July 9 that Krafton had delayed Subnautica 2 to 2025 to keep away from a $250 million payout to Unknown Worlds. The payout would have been tied to the studio hitting key income objectives by the top of 2025, objectives it will possible miss if Subnautica 2 have been delayed to 2026.
“Krafton believes that the absence of core management has resulted in repeated confusion in course and vital delays within the general mission schedule,” it continued. “The present Early Entry model additionally falls quick when it comes to content material quantity. We’re deeply disenchanted by the previous management’s conduct, and above all, we really feel a profound sense of betrayal by their failure to honor the belief positioned in them by our followers.”
Hours later, Cleveland took to Reddit to announce he and his friends are suing Krafton. Bloomberg video games reporter Jason Schreier has acknowledged that the lawsuit being filed for breach of contract, however the grievance is presently below seal.
“The small print ought to finally turn into (a minimum of principally) public,” wrote the Unknown Worlds co-founder. “You all deserve the complete story. Suing a multi-billion greenback firm in a painful, public and presumably protracted manner was actually not on my bucket record. However this must be made proper.”
“Subnautica has been my life’s work and I’d by no means willingly abandon it or the wonderful crew that has poured their hearts into it.”
Was Subnautica 2 able to launch in Early Entry?
Beneath Krafton and Cleveland’s cross-fired accusations is a single (apparently $250 million) query: is Subnautica 2 able to launch in Early Entry this 12 months?
Krafton claims it is not, saying that the present Early Entry construct “falls quick when it comes to content material quantity.” Cleveland acknowledged in a Reddit submit final week that he, McGuire, and Gill “know” that the sport is prepared for Early Entry launch. “Whereas we thought this was going to be our resolution to make, a minimum of for now, that call is in Krafton’s palms.”
There is not any impartial customary to use concerning a recreation’s readiness for Early Entry. Nevertheless a former indie writer lead producer (who requested anonymity to talk freely to guard delicate info) defined that at their former employer, video games entered Early Entry “largely feature-complete.” “Each replace in Early Entry was about bringing extra playtime content material,” they defined. “We received a number of iterations forward earlier than Early Entry, so that there have been about 1.5 updates prepared and ready to ship in these first 6-8 weeks earlier than launch.”
A type of updates can be “totally deliberate and packaged,” going via a full move by QA, and one other “half-cooked” to accommodate participant suggestions.
In accordance with Steam, the Early Entry program permits builders to promote their recreation on Steam “whereas it’s being developed,” and offers context to prospects {that a} recreation must be thought-about “unfinished” in its present state. There are no onerous pointers, simply guidelines on what builders aren’t allowed to do whereas releasing a recreation on this style.
Beneath these phrases, even when Krafton felt the sport wanted extra content material earlier than launch, one might fairly state that as long as the met Steam’s launch pointers, it might be “prepared” to launch in Early Entry in 2025.
Krafton has promised to decide to “honest and equitable” compensation for the builders at Unknown Worlds, and that the corporate will “present the rewards they have been promised.” When reached for remark, a Krafton spokesperson declined to offer additional statements on the state of affairs.
