This photo, provided by Unknown Worlds, shows the game development studio’s promotional image for Subnautica 2. (Yonhap)
SEOUL, July 17 (Korea Bizwire) — When Krafton Inc. acquired Unknown Worlds in 2021, the move was widely seen as a bold pivot—a chance for the South Korean gaming giant to break away from its PUBG legacy and tap into the thriving community around Subnautica, a beloved underwater survival franchise. But just three years later, that vision is facing its biggest test yet.
This week, Krafton found itself navigating stormy waters. In a rare public statement, the company reaffirmed its “fan-centric mindset” amid an escalating legal spat with the former leadership of Unknown Worlds, including studio co-founders Charlie Cleveland and Max McGuire and former CEO Ted Gill.
At the heart of the conflict is the troubled development of Subnautica 2, the much-anticipated sequel to the 2018 hit. Krafton alleges the project had stalled due to what it described as “a lack of clear direction” following what it called the absence of effective leadership. The studio’s top brass was removed earlier this month.
The move prompted swift backlash from fans and a looming lawsuit from the ousted executives, who accuse Krafton of breaching contractual agreements. The company, however, said in a regulatory filing this week that it has not yet received any official legal documentation from a U.S. court.
For fans of the Subnautica series, the news landed like a jolt. Online forums and Reddit threads quickly filled with speculation, disappointment, and calls for a boycott. While Krafton stopped short of directly addressing the boycott campaign, it attempted to soothe community concerns, reiterating that “fans are always at the center of every decision we make.”
This photo, provided by Krafton Inc., shows a promotional image for the PUBG Global Series 8, an international esports tournament for the company’s flagship battle royale game PUBG: Battlegrounds, under way in Shanghai. (Yonhap)
“Earning and living up to the trust and expectations of our fans is one of our core beliefs,” the company said in a written response to Yonhap News Agency. “We will repay the community’s patience with a more refined and outstanding gameplay experience.”
Krafton’s acquisition of Unknown Worlds was meant to broaden its creative horizons. Known for Subnautica’s immersive storytelling and player-driven exploration, the U.S.-based studio was a strategic fit for a company hoping to evolve beyond battle royales and into narrative-rich, multiplatform experiences.
Now, that strategy appears to hang in the balance.
Industry analysts, however, say it’s not necessarily all bad news. Ahn Jae-min, a senior analyst at NH Investment & Securities, noted that changing leadership can be disruptive, but in some cases, it clears the way for a necessary course correction.
“If the previous leadership was diverting focus from core development, then this shake-up might ultimately help realign the studio with its core mission,” Ahn said. “But it all depends on execution—whether Krafton can truly deliver a game that meets or exceeds expectations.”
Krafton, for its part, seems to understand the stakes. Beyond legal filings and PR responses, the company is now tasked with something far more difficult: restoring trust in a fiercely loyal player base, while proving that it can steward the future of Subnautica without the creators who first brought it to life.
As the legal battle looms and development hurdles persist, one thing is clear—Krafton is entering a make-or-break chapter not just for Subnautica, but for its own evolution as a global gaming powerhouse.
Kevin Lee (kevinlee@koreabizwire.com)
