[UPDATE - April 15, 2026] We had petitioned KRAFTON for a comment on the story, and it has now arrived. Unfortunately, it doesn't clarify much:
KRAFTON is currently focused on successfully supporting the Early Access launch of Subnautica 2. We have nothing further to share at this time.
[ORIGINAL STORY] In yet another interesting development in a lengthy ongoing legal struggle, KRAFTON has been removed from Subnautica 2's Steam page, where it had previously been listed as the game's publisher. Now, Unknown Worlds Entertainment is listed as both developer and publisher. The same actually happened for the Xbox version (Subnautica 2 will also launch on Xbox's early access equivalent, Game Preview) a few days ago.
It is unclear whether this change was prompted by the recent judge's ruling that reinstated Ted Gill to the position of CEO. It's possible Gill made the change on his own, though speculation in the community is running rampant with the hope that Unknown Worlds may have reacquired its independence from KRAFTON.
KRAFTON vs Unknown Worlds: Acquisition, Subnautica 2 Controversy & Lawsuit
South Korean publisher KRAFTON acquired Unknown Worlds Entertainment, the studio behind the beloved underwater survival series Subnautica and the Natural Selection shooter/RTS hybrid, in October 2021 for an undisclosed upfront sum, plus a $250 million performance-based bonus payable to the studio's former shareholders if the team hit certain financial and development targets by a specified deadline.
For years, development on the highly anticipated Subnautica 2 proceeded relatively quietly. For years, development on Subnautica 2 proceeded relatively quietly. That changed in early July 2025, when KRAFTON suddenly announced that CEO Ted Gill, co-founder and creative director Charlie Cleveland, and co-founder and technical director Max McGuire had all been removed from the studio effective immediately, with gaming industry veteran Steve Papoutsis (previously CEO of Striking Distance Studios, another KRAFTON subsidiary) installed as the new CEO.
Just days later, KRAFTON confirmed that Subnautica 2 would be delayed into 2026. The timing was immediately suspicious: the delay pushed the release past the earnout deadline, potentially denying the founders $225 million of the $250 million total payout. KRAFTON publicly maintained the delay "was not influenced by any contractual or financial considerations," but the ousted founders told a very different story. They alleged that Subnautica 2 was ready for Early Access and that KRAFTON had deliberately removed them when they refused to sanction the delay. They filed suit against KRAFTON through Fortis Advisors LLC in the Court of Chancery of the State of Delaware (Case No. 2025-0805-LWW).
The case went to trial, and in March 2026, Vice Chancellor Lori Will ruled entirely in Fortis's favor on Phase 1. The opinion revealed a particularly damning detail: KRAFTON's CEO had explicitly sought to avoid paying the earnout and had even consulted ChatGPT for a strategy to do so. The court found that none of the terminations were valid under the narrow "cause" definition in the original acquisition agreement, rejected KRAFTON's justifications, and declared the board resolution through which KRAFTON had seized operational control of the studio ineffective. As a remedy, it ordered the reinstatement of Gill as CEO, restored full operational control of the studio to him, and extended the earnout payment window by 258 days, moving the deadline from December 31, 2025 to September 15, 2026, with an option to extend further to March 15, 2027.
The case now moves to Phase 2, which will determine financial damages resulting from KRAFTON's conduct. For its part, KRAFTON had quickly revealed an Early Access launch in May 2026 after the judge's Phase 1 ruling, but Unknown Worlds may beg to differ if it has truly regained control of the IP.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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