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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The Steam page for Subnautica 2 has removed Krafton as its listed publisher, with Unknown Worlds Entertainment now appearing as the self-publisher. This change occurred on April 7, according to SteamDB, amid an ongoing legal battle between the studio and Krafton. The update coincides with tensions over executive dismissals and bonus payments.

Unknown Worlds has shared its early access roadmap for Subnautica 2. The plans detail near-term improvements and future expansions for the game that has drawn over two million players.

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Developers of the cozy RV simulator Outbound have moved up their PC release date to May 11 to steer clear of Subnautica 2's early access launch on May 14. The change aims to avoid direct competition with the highly anticipated underwater survival game. Outbound's demo will be removed from Steam on May 8.

Subnautica 2 has sparked debate among players over its limited options for dealing with hostile sea creatures. Many feel the current tools like flares leave them too vulnerable during early access. Developers at Unknown Worlds remain committed to the game's pacifist themes.

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French publisher Nacon has delayed its Nacon Connect event from March 4, 2026, to May, citing financial pressures from its recent insolvency filing. Game releases, including GreedFall: The Dying World on March 12, remain on schedule.

 

 

 

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