Yesterday, I said Subnautica 2 was free from legal drama. I spoke too soon. The newly reinstated CEO of the studio behind the upcoming underwater survival game, Unknown Worlds, claims that publisher Krafton intentionally leaked the game’s early access release window of May and potentially violated a judge’s ruling in the process.
On March 19, Game File reported that lawyers for Unknown Worlds sent a letter to Judge Will on Tuesday night shortly after IGN reported that an internal memo from Steve Papoutsis, the executive Krafton put in charge of the studio after the 2025 firings, had been sent out to the team behind Subnautica 2, announcing a May release window. Krafton later confirmed this release date with Kotaku and other outlets. But according to the letter from the ousted co-founders and newly returned CEO Ted Gill, Krafton didn’t have the authority to do this at all.
Judge Lori Will had ordered on March 16 that Gill be reinstated as CEO on that Monday morning, and only he would get to determine Subnautica 2′s launch plans. So when Papoutsis wrote and sent out that memo on Tuesday, he wasn’t even legally CEO of Unknown Worlds anymore.
“Krafton self-servingly announced the launch without any regard to its impact on the game, the team, or the community—let alone this Court’s Opinion,” said Gill and the co-founders’ lawyers in a letter to the judge reported by Game File.
“Announcing the release of a game is momentous, and it is typically accompanied by significant marketing activity, fanfare, and community coordination. And most importantly, the announcement is carefully designed to maximize excitement for the game. That entire process was supposed to be driven by Mr. Gill. However, in defiance of the Court’s Opinion, Krafton has now taken that away, further damaging the game and sowing additional confusion among the Subnautica community.”
The CEO and co-founders’ lawyers claim that Krafton ‘intentionally leaked” the release date to the press and then sent out a statement confirming it, and suggested Judge Will hold Krafton in contempt for its actions.
Krafton responds to Subnautica 2 CEO’s legal letter
Game File reports that on Wednesday, lawyers for Krafton sent their own letter to Judge Will and claimed the publisher had not violated her order.
“Papoutsis’s message was simply celebrating the [Unknown Worlds] employees’ efforts toward a past event: Krafton’s pre-Opinion determination that Subnautica 2 was ready for Early Access release. There was nothing improper about conveying the results of the milestone review or thanking the development team for their dedication and talent,” said Krafton’s legal team in its letter.
Krafton’s lawyers further clarified that Gill, as CEO, could still decide when to release Subnautica 2 and that “nothing in Papoutsis’s message alters Gill’s authority or discretion.”
Judge Will has reportedly not responded to either letter. Both sides were previously ordered to meet up later this week and submit a proposed judgment that would be in line with Judge Will’s ruling earlier this week. Gill’s letter from his legal team didn’t confirm or deny whether the newly returned CEO will stick with that allegedly leaked May release date.