Krafton had restated claims that Unknown Worlds leaders Charlie Cleveland, Max McGuire, and Ted Gill have been terminated for abandoning growth on Subnautica 2 and alleges that each one three execs have now “resorted to litigation to demand a multimillion-dollar payday they have not earned.”
The South Korean writer repeated these allegations in response to the lawsuit tabled by the three ousted execs—who final month claimed Krafton “determined to go nuclear” to keep away from paying a mammoth $250 million earnout tied to the success of the long-awaited sequel.
Cleveland, McGuire, and Gill claimed Subnatica 2 was primed for an early entry launch in 2025, however was delayed by Krafton so the corporate would not have at hand over that earnout—which expires in 2026.
“The promise of such speedy and large success introduced an issue for Krafton. Actually, it will definitely desires the sport to drive income. However a blockbuster [redacted] launch—squarely throughout the earnout interval—would seemingly set off the $250 million earnout to the studio’s former homeowners and staff,” they stated of their grievance.
Krafton disagrees. In a response filed on August 12 (shared on Scribd by Aftermath), the corporate acknowledges the dispute senates on the earnout (known as the Fairness Buy Settlement) however claims all three execs “rapidly misplaced curiosity in creating Subnautica 2” shortly after Krafton acquired Unknown Worlds for $500 million in 2021.
The corporate states that Cleveland and McGuire each “pocketed” round $200 million every from the sale, with Gill receiving $60 million. All three are accused of downing instruments after receiving that money.
“Cleveland and McGuire deserted their roles as studio-wide Sport Director and Technical Director to deal with their private ardour tasks and stop making video games for Unknown Worlds completely. And Gill, who remained, targeted on leveraging his operational management to maximise the earnout fee, quite than creating a profitable sport,” reads Krafton’s response.
Krafton says Unknown Worlds bosses have been ‘keen to gamble’ on untimely Subnautica 2 launch to safe mammoth payout
Notably, Krafton says the trio’s absence started to materially affect the event of Subnautica 2, inflicting concern among the many wider growth crew. It claims the event director at Unknown Worlds instructed Gill that individuals thought “Max and Charlie are checked out as studio heads” and have been “confused” as to why.
As well as, Krafton states the event lead for Subnautica 2 stated the primary Early Entry (EA) and second Early Entry milestones (the latter of which was deliberate for December 2025) would solely be round 12 p.c of the crew’s meant 1.0 scope. They’re then stated to have joked the sport “can be in growth for 30 years” at that charge.
Krafton claims Cleveland, McGuire, and Gill “turned determined” because of these points and realized they’d miss out on the 4 quarters of consecutive income wanted to maximise their earnout.
“Cognizant of this and confronted with a alternative between their very own financial pursuits and one of the best pursuits of Unknown Worlds and the Subnautica franchise, the Key Staff insisted on transferring ahead with a untimely EA launch of Subnautica 2,” provides Krafton, earlier than accusing all three of downloading “huge quantities of confidential info” in additional violation of the Fairness Buy Settlement (EPA).
“The Key Staff (Cleveland, McGuire, and Gill), who had offered all their fairness within the Firm and have been keen to gamble with the discharge of any sport, even one that may injury the Firm’s goodwill, in time for them to maximise their earnout on the expense of the Firm,” continues Krafton’s response.
“However Krafton was not keen to take the danger of the ensuing injury to the Subnautica franchise and the Firm’s long-term fame—a danger that, if materialized, can be irreversible, as proven with Kerbal House Program 2. As Unknown Worlds’ sole stockholder, Krafton had invested $500 million within the success of not solely Subnautica 2, but in addition Subnautica 3, Subnautica 4, and some other future Subnautica franchise product.
“To stop the Key Staff from completely damaging Unknown Worlds’ most precious IP, the Firm itself, and its goodwill with its followers, and following conduct by the Key Staff that plainly gave rise to termination for Trigger, Krafton terminated the Key Staff, in line with the phrases of each their employment agreements and the EPA.”
Krafton subsequently denied all allegations (except expressly admitted) leveled towards it within the grievance filed by Cleveland, McGuire, and Gill.
