'Nonsense' for ex-Unknown Worlds leaders to come back, Krafton tells court

Trial records show ousted leaders described themselves as ‘burned out,' unwilling to continue in roles

Corporate logs of Krafton and Unknown Worlds (Krafton, Unknown Worlds)

Krafton has argued that the former leaders of Unknown Worlds should not be reinstated, telling the Delaware Chancery Court that the executives had already disengaged from their responsibilities long before they were dismissed.

The trial between the Korean game publisher and the ousted US studio leaders concluded this week after three days of hearings and an 891-page transcript.

“We made clear to the court that we were forced to make a change when the former leaders showed little interest in the development of Subnautica 2, which has always been our top priority,” Kraftron said in a statement.

“Now, this trial comes down to plaintiffs asking to be restored to jobs they were not doing, said they had no interest in doing and had previously declined requests that they come back and do those jobs.”

Testimonies highlighted internal messages and journal entries indicating deep disengagement among the three former leaders: Charles Cleveland, Max McGuire and Ted Gill. According to court records, Cleveland told colleagues he was “semi-retired” in early 2024 and wrote privately that he was “completely burned out” and ready to “move on.”

McGuire wrote in a January 2024 journal entry that he “really needs to stop working at Unknown Worlds,” while evidence showed Gill urged him to stay due to potential “issues” the departure could raise with Krafton and the studio’s earnout structure. Another note indicated McGuire had attempted to resign, but was told by Gill that he could not.

In one group chat cited in court, Gill told McGuire to check his company ChatGPT account to “make sure there’s nothing incriminating,” to which McGuire replied, “They’ll know eventually.”

The legal dispute began after the three former leaders sued Krafton, accusing the company of deliberately delaying Subnautica 2 to avoid paying them up to $250 million tied to performance milestones. They are seeking reinstatement to their former roles. Krafton denies the claim, saying the delay — pushing early access into next year from its initial late-2024 target — was to ensure the game’s quality, not to avoid payment.

Krafton acquired Unknown Worlds, maker of the Subnautica and Natural Selection game franchises, for $750 million in 2021 — $500 million upfront with a potential $250 million earnout clause.

Regarding the development progress of Subnautica 2, Krafton said, “We have made incredible progress in the past few months and we are excited to share with all the Subnautica fans.”

The Delaware court is expected to issue a ruling after a posttrial hearing scheduled for Jan. 9, 2026.