This Might Be the Pettiest Game Publisher/Developer Feud in Years

Regardless of the industry, there will always be a certain level of tension between the developers of an art form and the business that’s positioned to spread it to the masses. Gaming is no stranger to that kind of conflict, especially with some of the bigger titles that could sell millions of copies. Companies like Activision and Infinity Ward have come into overt legal conflict in the past, with the disputes sometimes spilling out of the courtroom and impacting the games themselves. This can result in games being reworked, delayed, or even outright cancelled.

Even compared to those other examples, though, the conflict that’s been surrounding Subnautica 2 is one for the history books. While plans for the sequel to the 2018 surprise hit have been in the works for years, a five-year collaboration between games publisher Krafton and Subnautica developer Unknown Worlds has become especially fraught in the last year. The latest turn in the drama could force Subnautica 2 onto the market before it’s ready, risking the success of the game out of apparent spite and a bid to prevent Krafton from owing Unknown Worlds a massive windfall.

Unknown Worlds Vs. Krafton, Explained

The behind-the-scenes conflict between Krafton and Subnautica developer Unknown Worlds has gradually become one of modern gaming’s most intriguing conflicts — especially as efforts by Krafton to seemingly sink their own highly anticipated game has dragged the battle into court. Following the massive success of Subnautica in 2018, the publisher Krafton acquired Unknown Worlds in 2021. Production began on Subnautica 2, with Unknown Worlds promised a certain level of autonomy in their development. However, Krafton removed Unknown World CEO Ted Gill and other senior members of management from the studio in 2025, claiming the team had not been making the appropriate level of momentum on the game and had “abandoned” development. This also resulted in the game getting delayed.

However, Gill and other affected members of the team took Krafton to court, claiming that they were pushed out of Unknown Worlds illegally by Krafton executives who were concerned that Subnautica 2 would clear certain contractual benchmarks and earn a $250 million bonus for the development team. This conflict led to a court case where Krafton executives have been increasingly revealed to have had little knowledge about the full scope of the original game and had actively sought ways to terminate Gill and remove any chance of having to pay his bonus — especially as early indicators began to suggest that Subnautica 2 will indeed hit the benchmark needed for that payout. Earlier this month, a judge announced that the court was siding with Gill and that Krafton had “breached the EPA (Equity Purchase Agreement)” by firing Gill without due cause. This led to his restoration as the CEO of Unknown Worlds. However, the development following that announcement highlights exactly why this drama could be bad for gamers.

How The Early Access Release Date For Subnautica 2 Could Hurt The Game

Only further complicating matters, Krafton announced that Subnautica 2 will enter early access in May. According to a letter sent by Gill and his legal team to Delaware’s Court of Chancery, the decision to set Subnautica 2‘s early access release date came without any input from Gill or the developers at Unknown Worlds. This could seriously undercut the typical time frame that developers and publishers have to market a game and prepare for a global launch. Gill’s legal team claims that this may be another way to try and get out of having to pay Gill and his team if the game becomes a success, as the game might simply not be ready for release yet and could suffer from technical issues that, through bad word of mouth, sink the game.

While Gill can delay the launch thanks to his renewed status as CEO, pushing the release date could risk frustrating fans who’ve been excited to dive back into that world — and could undercut their own window to earn enough sales to make the bonus that seemingly caused all this strife in the first place. Gill and his team are accusing Krafton of trying to effectively sink their own game, even as they move to try and make sure the game is complete and ready for launch in May.

It’s all very frustrating, especially if the accusations against Krafton turn out to be true. Subnautica was a massive success when it launched in 2018, meaning that expectations for the sequel have been very high. However, it seems Krafton got squeamish about their bargain to acquire the game in the first place and was looking for a way out, regardless of whether the game suffered and consumers were disappointed as a result.

It’s undeniable that all this chaos has created stress for a likely exhausted development team, especially as the “early access” release date was decided by a Krafton team that reportedly has little experience with managing a proper early access release. If Subnautica 2 is a smash hit right out the gate, then both sides might be able to at least leave the development cycle as winners. However, it remains to be seen what this means for the future of the company, with even the judge in the case noting the “bad blood” that will undoubtedly exist between Krafton and Unknown Worlds going forward.