KRAFTON Responds to Unknown Worlds Founders’ Lawsuit, Claims Absentee Founders Affected Subnautica 2 Development

KRAFTON Responds to Lawsuit from Co-Founders of Unknown Worlds

KRAFTON, the parent company of Subnautica 2 developer Unknown Worlds, has issued a comprehensive response to a lawsuit initiated by co-founders Charlie Cleveland, Max McGuire, and Ted Gill. The lawsuit arises from the dismissal of these co-founders and allegations that their departure has adversely affected the development timeline of Subnautica 2, which was initially scheduled for release in 2025 but has since been pushed to 2026.

The Roots of the Dispute

The legal battle stems from a series of events leading to the co-founders’ termination, as outlined in a detailed bullet-point timeline. At the heart of KRAFTON’s defense is the claim that Cleveland and McGuire effectively “abandoned”their responsibilities within the studio. The company asserts that their disengagement from the project dates back to July 2023, preceding the lawsuit.

Allegations of Neglect and Abandonment

In its response filed on August 12, 2025, KRAFTON emphasizes its assertion that the co-founders had ceased to contribute meaningfully to the game’s development. The filing includes statements alleging that after KRAFTON acquired Unknown Worlds, Cleveland and McGuire lost interest in Subnautica 2, focusing instead on personal projects.

“Cleveland and McGuire abandoned their roles as studio-wide game director and technical director to focus on their personal passion projects and quit making games for Unknown Worlds entirely.”

Moreover, KRAFTON claims that Ted Gill, the remaining co-founder, shifted his focus towards leveraging operational control for financial gain rather than advancing the game’s development.

Focus Shift and Future Aspirations

The lawsuit further highlights Cleveland’s purported transition from video game development to a career in filmmaking. This point has been repeatedly emphasized by KRAFTON as evidence of his lack of commitment to the project.

The situation intensified as KRAFTON noted a statement from the lead developer of Subnautica 2, who indicated that the game was only 12% of the way toward its full scope when the co-founders declared the project was ready for early access. The developer’s tongue-in-cheek remark about the game being in development for 30 years sheds light on the perceived slow progress.

A Lack of Return to Leadership Roles

KRAFTON’s filing also asserts that Cleveland and McGuire declined opportunities to return to their former leadership positions, with Gill reportedly stating that they were not welcome back to roles they had vacated. A statement attributed to Cleveland reveals that he was aware from the outset that the development team for Subnautica 2 would be led by a younger generation of talent, indicating a shift in direction from the original vision.

What Lies Ahead?

The court proceedings surrounding this case are expected to unfold over several months, if not years, as both parties present their arguments. As the legal complexities evolve, every claim made will require validation in court, making the resolution of this dispute uncertain.

Regardless of the outcome, the implications of this conflict will likely have lasting effects on all stakeholders involved and could reshape the future of Unknown Worlds and the *Subnautica* franchise.

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