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| A screengrab from the Subnautica 2 trailer |
The murky depths surrounding the release of Subnautica 2 have gotten even choppier. What was supposed to be a moment of celebration for fans—the confirmation of a May 2025 Early Access launch—has instead ignited a fierce legal battle between the game’s developer, Unknown Worlds, and its parent company, Krafton.
The publisher, best known for PUBG, is now facing serious allegations that it deliberately leaked the release window out of spite, violating a court order in the process. The controversy comes just weeks after Ted Gill was reinstated as CEO of Unknown Worlds, seemingly putting an end to a bitter leadership dispute—but it appears the fight is far from over.
A Memo, A Leak, and a Lawsuit
The drama began on March 19, when a report from GameFile revealed internal turmoil following a memo sent by Steve Papoutsis, a Krafton executive who had previously served as the CEO of Unknown Worlds. According to documents obtained by the outlet, Papoutsis sent a message to the Subnautica 2 development team, announcing a May launch window for the game’s long-awaited Early Access debut.
Soon after, Krafton confirmed the window to various video game news outlets, sending the fanbase into a frenzy. However, according to a scathing letter from the newly reinstated CEO, Ted Gill, Krafton had no authority to make that call.
In fact, according to a legal filing, Judge Lori Will had explicitly ruled on March 16 that Ted Gill, as the reinstated CEO of Unknown Worlds, holds the sole authority to determine the game’s launch plans. The memo from Papoutsis, therefore, was allegedly sent when he was no longer legally recognized as the CEO of the studio.
You can read the full breakdown of the initial court ruling and the leaked memo over at IGN’s detailed report here.
"A Violation of the Court’s Ruling"
Ted Gill did not mince words in his letter to Judge Will. He accused Krafton of acting out of "spite," arguing that the publisher’s unilateral announcement disregarded the game’s health, the community’s trust, and the court’s authority.
“Krafton self-servingly announced the launch without regard for its impact on the game, the team, the community, or the court’s opinion,” Gill stated in the filing.
Unknown Worlds’ legal team elaborated further, emphasizing that a game launch is not a casual memo. “Announcing a game’s release is a significant event, usually involving extensive marketing, fan engagement, and community coordination. It is carefully planned to maximize excitement for the game,” the lawyers wrote.
They added that this process was meant to be led by Gill. “However, in violation of the court’s ruling, Krafton has now assumed that authority, further harming the game and creating confusion among the Subnautica community.”
Krafton Fires Back
Unsurprisingly, Krafton has pushed back against these allegations. In a subsequent letter to Judge Will, the company denied any wrongdoing, arguing that the memo was merely an internal pat on the back rather than an official corporate marketing decision.
Krafton’s letter stated that Papoutsis’s message was “simply a celebration of the efforts of Unknown Worlds employees regarding a previous milestone: Krafton’s prior determination that Subnautica 2 was ready for early access.”
The publisher maintained that “there was nothing improper about sharing the milestone review results or thanking the development team for their dedication and talent.”
Despite this defense, the timing of the "celebration" and the subsequent press push by Krafton have led many industry observers to side with Gill, viewing the move as an attempt to seize control of the narrative while the court order was still fresh.
What This Means for the Game’s Release
For fans eagerly awaiting the chance to dive back into the alien oceans, the situation is precarious. While Krafton has publicly stated the Early Access window is May, Gill argues that such a decision is not legally binding if it comes from the publisher.
With Judge Will now overseeing this renewed dispute, there is a possibility that the May release date could be delayed again, or that the marketing rollout will be halted until the leadership structure is fully respected.
The legal saga between Krafton and Unknown Worlds has already pushed Subnautica 2 back significantly. While the core development team remains dedicated to delivering the survival experience fans love, this corporate infighting threatens to overshadow the launch.
Looking to revisit the original depths? You can grab the original Subnautica on Amazon to prepare for the sequel’s eventual arrival.
The Bottom Line
As the case continues to unfold, all eyes are on Judge Lori Will to see if she holds Krafton in contempt of court. For now, the future of Subnautica 2 hangs in the balance, tangled between a court order, a power struggle, and one of the most anticipated survival sequels in recent memory.
For ongoing updates on the legal filings, you can follow the original reporting by GameFile here.