Subnautica 2’s development has taken a dramatic and controversial turn in what is now being described as a “messy, messy, messy” situation between developer Unknown Worlds and parent company Krafton. Following a series of shocking developments, including the firing of the studio’s original founders and a major delay to the game, tensions have erupted into a full-blown legal battle—one that could shape how publisher-developer relationships evolve in the gaming industry.

At the heart of the chaos is a $250 million bonus deal, part of Krafton’s 2021 acquisition of Unknown Worlds. The founders—Charlie Cleveland, Max McGuire, and Ted Gill—allege Krafton is intentionally delaying the release of Subnautica 2 to avoid paying out the performance-based bonus tied to the game’s launch by the end of 2025. In response, Krafton has accused the former leaders of abandoning their duties, citing failures like 2024’s Moonbreaker and Cleveland’s personal creative pursuits.

Subnautica 2 Delayed: Lawsuits, Leadership Shakeups, and Industry Fallout

The Subnautica 2 delay to 2026, announced shortly after the leadership shake-up, has left fans and developers equally stunned. According to Cleveland, the game was nearly ready for early access, but control has now shifted to Krafton, which replaced the founders with a new executive. The ongoing lawsuit, unsealed on July 16, alleges sabotage and wrongful termination by Krafton to avoid contractual obligations.

This high-profile dispute mirrors growing concerns across the gaming world, where artistic vision often clashes with corporate strategy. For a broader look at how large studios handle blockbuster projects, check out our coverage of Rockstar’s GTA 6 release and roadmap.

Whether Subnautica 2 emerges stronger from this legal storm—or sinks under corporate pressure—remains to be seen. But one thing is certain: this is more than a development delay—it’s a turning point for indie game studios navigating big-budget partnerships.