Krafton has issued a formal response to the lawsuit filed by the three former executives at Unknown Worlds, who were leading the development of Subnautica 2. Krafton had acquired Unknown Worlds for $500 million, alongside a potential additional $250 million bonus contingent upon meeting certain sales milestones after launching the game, which was primarily intended for the executives.

On the brink of Subnautica 2’s early access debut in July, Krafton terminated the three executives, alleging that they had neglected their responsibilities. Consequently, Steve Papoutsis was brought in as CEO, and the release of the game was postponed to 2026, attributed to the absence of significant content. This led to the former Unknown Worlds leaders initiating a breach of contract lawsuit, seeking reinstatement and the bonus payment, claiming their dismissal had impaired the game’s release potential.

In their official submission, Krafton countered the lawsuit with a detailed 100-page document addressing all claims. They asserted that following a successful sale of Unknown Worlds, the former leaders shifted focus to personal projects instead of continuing with Subnautica 2. The document references social media statements from the developers as part of their defense.

As the situation unfolds, Krafton expressed concerns regarding the game’s condition prior to its recommended release. According to their assessment, the current state of Subnautica 2 would ultimately jeopardize the franchise and future installments, echoing the negative feedback received by titles like Kerbal Space Program 2.

Krafton also implied that the leadership team allegedly compromised confidential material in violation of their agreement, suggesting intentions to self-publish the game. With the lawsuit consisting of 186 claims against Krafton, it remains to be seen how the legal proceedings will develop.