Krafton Files Court Papers in Subnautica 2 Executive Dispute

Krafton has submitted new court documents after a judge blocked the company from forcing the founders and former leadership of Subnautica 2 developer Unknown Worlds to surrender their devices for inspection. The filings, made after a Sept. 12 hearing, aim to counter the founders' motion to compel, a legal request to require Krafton to take certain actions, and also request additional relief from the court.

The dispute centers on a $250 million USD bonus linked to revenue targets for Subnautica 2's 2025 Early Access launch. This figure represents the total bonus pool available to the development team if the game met specific performance milestones. Former Unknown Worlds leaders, represented by Fortis Advisors LLC, claim Krafton attempted to delay the game to avoid paying the bonus.

Krafton alleges the executives threatened to self-publish Subnautica 2 without company support, prompting their termination. The company also claims the executives downloaded thousands of company files and emails before leaving. The founders deny any wrongdoing and argue that Krafton changed its stated reasons for firing them during the litigation.

Executives Allegedly Download Files

Krafton’s filings include an affidavit from Alvarez & Marsal’s Forensic Technology Services managing director. The document describes what the company calls a "mass download of complete folders and their contents from Google Drive" in June and July 2025. Krafton also said it offered to extend the bonus earnout period if the executives returned to work, but the offer was declined.

The founders maintain they acted within their rights as directors and had authorization to copy company files. The case underscores the high stakes of development bonuses, corporate oversight, and intellectual property control in the gaming industry.

A Krafton spokesperson told GamesIndustry.biz that the filings “highlight the former executives’ misconduct” and emphasized the company remains focused on delivering the best experience to Subnautica fans.

The dispute underscores how financial agreements and executive departures can lead to complex legal battles. Notable cases in the gaming industry include Riot Games' 2021 settlement of a gender discrimination lawsuit, where the company agreed to pay $100 million to resolve allegations of systemic sex discrimination, harassment, and retaliation. 

Similarly, Epic Games' 2023 antitrust ruling against Google challenged the company’s Play Store policies, resulting in a jury decision favoring Epic and a court order requiring limited adjustments to allow some third-party app stores. With Subnautica 2’s Early Access launch still central to the dispute, the outcome could set new precedents for bonus enforcement and corporate governance in major game development studios.