Lawyers seek Krafton contempt charge over Subnautica 2 release announcement

Lawyers for Subnautica 2 developer Unknown Worlds' reinstated CEO Ted Gill are pushing for publisher Krafton to be found in contempt of court. Krafton confirmed a May early access release for the game a day after a judge ordered Gill's reinstatement with full authority over the studio and its projects. The legal team claims the announcement defied the ruling.

Krafton acquired Unknown Worlds in 2001. Last summer, the publisher removed CEO Ted Gill, along with studio founder and Subnautica game director Charlie Cleveland, and special projects director Max McGuire. Steve Papoutsis, CEO of Krafton's Striking Distance studio behind The Callisto Protocol, replaced them. Gill, Cleveland, and McGuire then sued, alleging they were pushed out and that Subnautica 2 was delayed to avoid a $250m bonus payment. Reports emerged that Krafton's CEO had used ChatGPT to brainstorm ways to avoid the bonus. This week, a Delaware judge ruled that Krafton breached its Equity Purchase Agreement by terminating the key employees without valid cause and seizing operational control. The judge declared the board resolution firing them ineffective and ordered Gill reinstated with full operating authority over Unknown Worlds and Subnautica 2's early access release. The day after the ruling, Papoutsis shared a staff memo stating the game had passed a milestone and was ready for early access in May. Krafton confirmed this to publications. Gill's lawyers raised concerns with the judge, arguing Papoutsis lacked authority post-ruling and that Krafton had intentionally leaked the information. They wrote, 'Krafton self-servingly announced the launch without any regard to its impact on the game, the team, or the community - let alone this Court's Opinion.' Krafton countered that the message celebrated a pre-ruling determination and did not affect Gill's authority. Gill's team has now filed a motion claiming Krafton continued confirmations after their concerns were raised, undermining the litigation. A dispute remains over the ruling's effective time: Gill's side says 9am Monday, while Krafton awaits an implementing order. Krafton stated it is evaluating options.

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Delaware judge rules in favor of Unknown Worlds in Subnautica 2 contract dispute against Krafton, reinstating CEO Ted Gill.
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Judge rules Krafton breached contract in Subnautica 2 dispute

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A Delaware judge has ruled that Krafton breached its contract with Unknown Worlds by firing key employees without cause and seizing control of Subnautica 2. The court ordered the reinstatement of CEO Ted Gill with full authority over the studio and its upcoming early access launch. The $250 million earnout period has been extended to September 15, 2026.

Unknown Worlds Entertainment announced Subnautica 2's early access launch for May on PC and Xbox following a Delaware judge's ruling to rehire former CEO Ted Gill. The decision comes amid legal disputes with publisher Krafton over firings and a potential $250 million payout, though Krafton disputes the outcome and plans further litigation.

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Subsidiary studios of publisher Nacon, including GreedFall: The Dying World developer Spiders, have filed for insolvency this week amid unpaid bills. French video game union Syndicat des Travailleuses du Jeu Vidéo blames Nacon's management for mismanagement and sabotaging viable teams. The crisis follows recent game launches and Nacon's own debt proceedings.

Steven Sharif, creator of the MMORPG Ashes of Creation, has secured a temporary restraining order against Intrepid Studios' board of directors. He filed a lawsuit accusing the board, led by Rob Dawson, of breaches of fiduciary duty and attempts to unlawfully seize company assets, including the game's intellectual property. The San Diego court granted the order to prevent access to trade secrets amid the company's recent shutdown and mass layoffs.

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Riot Games has announced layoffs affecting 80 employees on its 2XKO development team, less than a month after the fighting game's console release. Executive producer Tom Cannon cited insufficient player momentum as the reason for the cuts. Despite the reductions, the game will continue receiving updates.

The Stop Killing Games campaign, led by Ross Scott, plans to create non-governmental organizations in the European Union and the United States to combat publishers ending support for purchased video games. These NGOs will focus on long-term counter lobbying and watchdog activities. The initiative follows the campaign's success in gathering over a million signatures on its petition.

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Marc-Alexis Côté, the former head of the Assassin's Creed franchise, has filed a lawsuit against Ubisoft alleging constructive dismissal. He claims nearly $1 million in damages following his sudden departure from the company. The exit came after the release of Assassin's Creed Shadows last year.

 

 

 

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