Krafton Chief: 'Subnautica' Maker Was Deal-Breaker or No Deal

Krafton CEO: No Unknown Worlds Deal If Leadership Departure Was Known

The acquisition of Unknown Worlds, the studio behind the hit underwater exploration game *Subnautica*, is now under a harsh legal spotlight. Krafton CEO Changhan "CH" Kim testified in court this week, claiming the South Korean gaming giant would never have shelled out $500 million for the studio if it had known key leaders allegedly planned to step back from their roles so quickly.

Krafton Chief: 'Subnautica' Maker Was Deal-Breaker...

The courtroom drama unfolds in Delaware's Court of Chancery, where ousted Unknown Worlds co-founders Charlie Cleveland, Max McGuire, and Ted Gill are fighting to be reinstated after being fired by Krafton earlier this year. The trio alleges they were essentially pushed out to avoid paying a lucrative earnout tied to the (now delayed to 2026) early access launch of *Subnautica 2*. They're also accusing Kim of trying to wrestle control of the studio with a secret internal project dubbed "Project X," supposedly designed to consolidate his own position.

Krafton paints a very different picture,

Krafton paints a very different picture, accusing the former execs of becoming, in their words, "absentee landlords" who stopped working, effectively abandoning their posts, and even stealing confidential information on their way out.

During his testimony on November 18, 2025 (yes, I'm writing this from the future!), Kim stated that Krafton was completely in the dark about Cleveland and McGuire’s alleged reduced involvement in *Subnautica 2*. He further claimed they were offered the chance to return, but refused. According to Kim, Cleveland was especially keen on pursuing other ventures, specifically movie projects.

The core of Kim's argument, and perhaps the most damning, is that Krafton wouldn't have even considered the acquisition if it had known about the leadership team's alleged intentions. When asked what would have happened if Cleveland had said he wanted to stop making video games, Kim was blunt: "There wouldn't be any deal." He repeated the sentiment when asked if the deal would have proceeded had Cleveland revealed he wouldn’t participate in *Subnautica 2*'s development. "There wouldn't be any deal, I don't think."

Essentially, Krafton argues that the entire

Essentially, Krafton argues that the entire premise of the acquisition hinged on the continued active leadership of Cleveland, McGuire, and Gill. As Kim put it, "The single purpose of Unknown Worlds is to make games. And if they are not making any games… there is no meaning for them to have any operational control. I don't think I would have given it to them."

This trial is far from over, and the differing narratives paint a complex picture of what really happened behind the scenes at Unknown Worlds. One thing is clear, though: a massive deal hinged on trust and perceived commitment, and that trust appears to have completely broken down.