Subnautica 2 Early Access Sparks New Controversy [Updated]
▼ Summary
– Lawyers for the reinstated CEO of Unknown Worlds allege that Krafton improperly announced Subnautica 2’s May early access release, violating a court order that gave the CEO sole authority over the launch.
– The legal dispute stems from a ruling that Krafton breached its contract by firing the studio’s executives to avoid paying up to $250 million in performance-based bonuses tied to the game’s release.
– Krafton’s defense claims its announcement merely celebrated a past development milestone and does not infringe on the CEO’s authority to independently assess the final release schedule.
– The ousted executives’ lawyers argue the premature announcement damages the game’s marketing potential and community excitement, which is critical given the financial stakes of the launch’s performance.
– Both parties are now in further legal filings, with the former executives seeking potential sanctions against Krafton and disputing the effective date of the court’s reinstatement order.
The announcement of Subnautica 2’s early access release in May has ignited a fresh legal dispute, just days after a court ruling partially reinstated the original leadership of developer Unknown Worlds. Lawyers for the ousted executives argue the publisher, Krafton, improperly revealed the launch window, potentially harming the game’s prospects and violating a judicial order. This development adds another layer of complexity to an ongoing lawsuit centered on performance-based bonuses worth up to $250 million.
Legal representatives for former CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire sent a letter to Vice Chancellor Lori Will of Delaware’s Court of Chancery. They expressed “serious concerns” about Krafton’s conduct following her Monday ruling. That decision found Krafton had breached its contract by firing the executives to avoid substantial bonus payouts tied to the game’s early access release. The court ordered Gill’s reinstatement with full authority over any early access launch decisions for the highly anticipated sequel.
The controversy stems from a memo from Steve Papoutsis, the executive Krafton installed to lead Unknown Worlds after the 2023 firings. In a note to staff reported by IGN, Papoutsis stated Subnautica 2 had passed a key milestone and was ready for an Early Access release in May. The lawyers for the ousted founders contend this announcement was made improperly, as Papoutsis lacked the authority following the court’s ruling. They accused Krafton of “intentionally” leaking the information and then confirming it, thereby damaging the planned marketing cycle and sowing confusion within the game’s community.
In response, Krafton’s legal team defended their client’s actions in a separate letter to the vice chancellor. They argued that Papoutsis’s message merely celebrated a past development milestone and thanked the team, which was not a violation of the court’s order. They maintained that Gill, in his restored role as CEO, retains the independent authority to assess the game’s state and set the final release schedule.
The core of the legal battle revolves around performance-based bonuses potentially worth $250 million. The former leadership team alleges Krafton terminated them to avoid these payouts, which were contingent on the game’s successful early access launch—a launch Krafton had previously blocked. The recent announcement complicates Gill’s position, as any disruption to a smooth launch could impact the game’s initial performance and, by extension, the financial stakes involved.
Vice Chancellor Will has not publicly responded to the latest letters. Both parties were previously instructed to confer and submit a proposed judgment. In her Monday ruling, she acknowledged the “bad blood” between the sides but emphasized they “must—act in good faith” moving forward.
Update – March 20: Hours after the initial report, Gill’s lawyers filed a formal motion escalating the matter. They called on the judge to sanction Krafton, arguing its actions “undermined the relief” sought in the litigation. The motion highlights that Krafton confirmed the May window to other outlets like Kotaku and PC Gamer after being made aware of the founders’ concerns. It states that Gill was put in a difficult position, needing to evaluate the game and plan a launch after the date was already public, potentially facing “fan disappointment” if he changes the timing. Krafton’s lawyers, in a separate filing, dispute when the court’s ruling took effect, arguing it is not active until a formal implementing order is signed.
In other gaming news, the annual Game Developers Conference (GDC) featured the innovative Alt. Ctrl showcase. A standout was Pivot, a cooperative game where players physically lift and tilt a styrofoam couch to maneuver a virtual one through an on-screen obstacle course, pursued by a giant skull. Developed by students at the University of Utah, the project offers a novel take on couch co-op.
Additionally, Ubisoft is laying off over 100 employees at its Red Storm studio in North Carolina as the location ceases in-house game development. Meanwhile, Nvidia faced significant criticism online and in the media following its reveal of DLSS 5, a new AI-driven graphics technology intended to improve game visuals.
(Source: Gamefile.news)
