Subnautica 2 Lawsuit Escalates as Krafton Shifts Strategy in Ongoing Dispute

The ongoing lawsuit surrounding Subnautica 2 has entered an even more confusing phase, as Krafton, owner of Unknown Worlds, has abruptly shifted its legal arguments. What was once a case about the founders allegedly attempting to push the game into release before it was ready has now been reframed, leaving lawyers, the judge, and industry observers questioning the motivations behind the move.

Initially, Krafton argued that the decision to terminate the founders stemmed from their belief that Subnautica 2 was prepared for an early access launch. According to Krafton, the leadership team effectively walked away from the project, leaving the company to argue that this justified their dismissal. This claim placed the readiness of the game at the center of the dispute, but in a recent court session, Krafton dropped that reasoning entirely, replacing it with accusations of deception and abandonment.

Judge Lori W. Will described the reversal as troubling, noting that the supposed lack of readiness had been cited in both termination notices and earlier arguments. Fortis Advisors, representing the ousted founders, called the pivot a “seismic shift” and expressed confusion over why such a central claim would be abandoned at this stage. The uncertainty has complicated discovery, with Fortis demanding documents that Krafton insists are irrelevant, despite being tied directly to its original termination rationale.

The confusion adds to existing frustration around why Subnautica 2 has been delayed to 2026. Fans had expected the sequel’s arrival far earlier, but the shifting legal battle suggests deeper issues behind the scenes. While Krafton insists that termination was justified due to misconduct, the founders counter that the real motive was financial, pointing to allegations that the publisher deliberately slowed development to avoid paying out a massive earnout.

At the heart of this allegation is a $250 million bonus tied to performance targets. The founders argue that Krafton intentionally delayed Subnautica 2’s release in order to prevent the payout, a claim Fortis says requires access to communications and internal emails. So far, Krafton has resisted providing broad access, only offering materials from a select few senior staff members. Judge Will pushed back on this narrow approach, noting that it seemed unlikely relevant conversations would be limited to such a small circle.

Tensions escalated further when Krafton accused the founders of taking confidential files and retaining company devices after their dismissal. The defense countered that the materials were rightfully in their possession and rejected Krafton’s request for forensic inspection of personal hardware. The judge sided against Krafton on that point, calling the motion too invasive.

Despite these rulings, the case remains in the discovery phase with no clear resolution in sight. Both sides have been instructed to confer over custodians and data access, though Krafton’s earlier refusal to cooperate on similar issues has already frustrated the court. With central arguments changing mid-case and critical evidence still in dispute, the path forward looks increasingly complicated.

For players awaiting Subnautica 2, the legal battle continues to overshadow any updates about the game itself. Krafton has not provided clarity on development progress beyond confirming that the release has been pushed back. Meanwhile, the courtroom back-and-forth continues to suggest that internal conflicts, rather than creative direction alone, are driving the delays.

The Subnautica 2 lawsuit highlights how corporate disputes can have direct consequences on development schedules and fan expectations. Until the legal situation stabilises, questions about the sequel’s future will remain unanswered, and the conflict between Krafton and its former leadership shows no sign of cooling.