The original creative team behind the highly anticipated Subnautica 2 has initiated legal proceedings against publisher Krafton. This development follows a public dispute between the South Korean gaming giant and the former leadership of Unknown Worlds Entertainment, including game director Charlie Cleveland and studio co-founder Max McGuire.

Krafton recently released an official statement countering the developers' claims, introducing new allegations about bonus distribution. The publisher asserts that 90% of the contested $250 million earnout was allocated to the former executives, suggesting they intended to withhold these funds from the broader development team - a claim the ousted leaders vehemently deny.

In a passionate rebuttal, Charlie Cleveland stated: "The suggestion that Max, Ted, and I planned to personally retain the entire earnout is completely false." He emphasized their history of profit-sharing with team members, including during the studio's acquisition by Krafton.

The gaming community has reacted strongly to the controversy. A Reddit post advocating a boycott of Subnautica 2 has gained significant traction, amassing over 50,000 upvotes. Many fans are removing the game from their Steam wishlists in protest, potentially impacting its position among 2026's most anticipated releases.

Legal experts anticipate portions of the lawsuit will become public in coming weeks. Cleveland has promised to keep supporters informed as the case develops. This marks another legal challenge for Krafton, which continues to face litigation in India regarding alleged data privacy violations through its messaging platform.