Seoul, South Korea – Krafton Inc., the South Korean gaming giant behind PUBG, is escalating a high-stakes legal fight against former leaders of Unknown Worlds Entertainment, alleging a brazen plot to hijack the studio’s crown jewel: Subnautica 2. The lawsuit, filed in California federal court, claims two ex-executives orchestrated a "secret campaign" to steal trade secrets and talent while developing a rival underwater survival game.
Background: A Blockbuster Acquisition Turns Sour
Krafton acquired Unknown Worlds in 2021 for $75.1 million, betting big on the studio’s acclaimed Subnautica franchise. The deal promised stability for the team behind 2018’s breakout hit, which sold over 5 million copies. But tensions erupted in 2023 when studio co-founder Charlie Cleveland and executive producer Jeremy Murray abruptly exited. Krafton alleges they immediately launched a competing studio, "Frost Giant" (unrelated to the Frost Giant Studios known for RTS games), while secretly recruiting Unknown Worlds staff and exploiting confidential Subnautica 2 designs.
Explosive Allegations: Sabotage and Stolen Secrets
According to Krafton’s complaint, Cleveland and Murray:
- Stole Prototype Assets: Copied Subnautica 2’s early biome concepts, creature designs, and gameplay mechanics.
- Poached Talent: Lured at least 10 key developers with promises of equity in their new venture.
- Concealed Conflicts: Hid their dual roles while negotiating Krafton-funded salaries and bonuses.
- The suit claims internal communications prove the duo referred to their project as "Subnautica in space but the same DNA."
Embedded Document:
Krafton’s Redacted Complaint (via Game File)
Pages 15–23 detail alleged operational sabotage, including deleted Slack messages and hidden meetings.
Fallout for Subnautica 2
The timing couldn’t be worse. Unknown Worlds had teased Subnautica 2 for a 2025 release, promising multiplayer and dynamic ecosystems. Development has since stalled, with Krafton admitting "significant delays" due to the exodus. Fans fear a repeat of 2020’s Subnautica: Below Zero, which faced similar turbulence after lead developers departed mid-cycle.
Defense: "Corporate Retaliation"
Cleveland and Murray deny wrongdoing. Their legal team calls Krafton’s claims "a fictional revenge saga," arguing the publisher imposed "toxic" deadlines and ignored creative input. "This is Krafton punishing creators for leaving a stifling environment," a spokesperson told Game Developer.
Industry Implications
Legal experts note the case could test how studios protect IP amid gaming’s talent wars. "Non-competes are notoriously hard to enforce in California," said IP lawyer Denise Howell. "But if Krafton proves trade secret theft, it’s a game-changer."
What’s Next?
With both sides digging in, a trial seems likely. Krafton seeks damages and an injunction blocking the ex-executives’ new project. For now, Subnautica 2 remains in limbo—a saga as deep and murky as the ocean trenches it depicts.
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