KRAFTON Removed as Publisher for Subnautica 2 on Steam

In a significant turn of events within an ongoing legal dispute, KRAFTON has been removed from the Steam page of Subnautica 2, where it had previously been credited as the game’s publisher. The spotlight now shines on Unknown Worlds Entertainment, which is officially recognized as both the developer and publisher of the title. Interestingly, this change also occurred recently for the Xbox version, with the game set to debut on Xbox’s Game Preview, an early access platform.

The motivations behind this development remain unclear. Some speculate that it could be linked to a recent court ruling that reinstated Ted Gill as CEO of Unknown Worlds. However, there are also whispers within the community suggesting that this change indicates Unknown Worlds may have successfully regained its autonomy from KRAFTON.

The KRAFTON vs. Unknown Worlds Saga: Acquisition and Legal Disputes

KRAFTON, a South Korean video game publisher, completed its acquisition of Unknown Worlds Entertainment—known for the renowned Subnautica franchise and the hybrid shooter/RTS game Natural Selection—in October 2021. The terms of this acquisition included an unspecified upfront payment and a potential bonus of $250 million, contingent on the studio meeting specific financial and developmental objectives by a defined deadline.

For several years, the development of the much-anticipated Subnautica 2 progressed without major public disturbances. This was disrupted in early July 2025, however, when KRAFTON suddenly announced the immediate removal of CEO Ted Gill, co-founder and creative director Charlie Cleveland, and co-founder and technical director Max McGuire. In their place, gaming industry veteran Steve Papoutsis, previously of Striking Distance Studios (another KRAFTON subsidiary), was appointed as the new chief executive.

Shortly following this transition, KRAFTON confirmed that Subnautica 2 was being delayed until 2026. The timing raised eyebrows, as this delay pushed the release beyond the earnout deadline, threatening to forfeit the founders’ potential payout of $225 million out of the total $250 million. While KRAFTON publicly claimed that the delay was not financially motivated, the former executives contended otherwise, asserting that the game was ready for Early Access and that their removal had occurred after they opposed the delay. This led them to file a lawsuit against KRAFTON via Fortis Advisors LLC in Delaware’s Court of Chancery (Case No.2025-0805-LWW).

Following a trial, Vice Chancellor Lori Will issued a ruling in March 2026 that favored the plaintiffs during Phase 1 of the proceedings. The ruling unveiled troubling evidence: KRAFTON’s CEO had intentionally aimed to evade the earnout payment and even sought advice from ChatGPT on the matter. The court ruled that none of the terminations complied with the “cause” definition in the acquisition agreement, dismissed KRAFTON’s explanations, and invalidated the board resolution that had facilitated KRAFTON’s operational takeover of the studio. Consequently, the court mandated the reinstatement of Gill as CEO, returned full operational control to him, and extended the earnout payment deadline by 258 days, adjusting the due date from December 31, 2025, to September 15, 2026, with an option for further extension to March 15, 2027.

The litigation is now set to enter Phase 2, where the focus will be on calculating financial damages due to KRAFTON’s actions. In a quick response following the favorable ruling, KRAFTON announced an Early Access launch for Subnautica 2 in May 2026, yet it remains to be seen how this will align with Unknown Worlds’ claims of reclaimed control over the intellectual property.

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