Full Breakdown
Krafton CEO Allegedly Consulted AI to Avoid Paying Subnautica 2 Bonuses
11/19/2025, 12:14:04 AM
Legal Dispute Overview
The ongoing legal conflict between Krafton, the publisher of Subnautica 2, and the ousted leadership of developer Unknown Worlds has escalated significantly. A pre-trial brief filed by former studio heads Charlie Cleveland, Ted Gill, and Max McGuire alleges that Krafton CEO Changham Kim sought ways to avoid paying a substantial earnout bonus tied to the game's performance. The bonus, reportedly amounting to $250 million, was contingent on the successful early access launch of Subnautica 2, which has now been delayed to 2026.
Allegations of Professional Embarrassment
The brief claims that Kim was "desperate" to avoid the professional embarrassment of being perceived as having overpaid for Unknown Worlds. It alleges that he feared that paying the earnout would damage his reputation and potentially jeopardize his position as CEO. In an unusual turn, Kim allegedly consulted the AI tool ChatGPT for advice on how to circumvent the payment obligations. According to the brief, even ChatGPT indicated that it would be "difficult to cancel the earnout" if sales targets were met.
Project X: A Strategy to Delay
The plaintiffs assert that Krafton initiated a covert operation dubbed "Project X," aimed at either negotiating a deal with the founders to delay the game's release or executing a takeover of Unknown Worlds. This initiative was reportedly designed to push the game's launch outside the earnout payment window, thereby eliminating Krafton's financial obligations. Slack messages included in the brief suggest discussions between Kim and Krafton CFO Richard Yoon about the potential for a takeover if negotiations failed.
Official Statements & Responses
Krafton has denied all allegations made in the pre-trial brief, asserting that the leadership changes were necessary due to the founders' alleged lack of focus on Subnautica 2. The company claims that the decision to delay the game was based on legitimate development concerns rather than an attempt to avoid paying the earnout. A Krafton representative stated, "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."
Criticism & Opposition
Critics of Krafton's actions, including the former Unknown Worlds executives, argue that the company's maneuvers reflect a broader issue of corporate manipulation in the gaming industry, particularly regarding earnout agreements. They contend that Krafton's focus on avoiding financial obligations undermines the integrity of the development process and harms the game's fanbase.
Conflicting Reports & Gaps
While Krafton maintains that the delay was necessary for the game's quality, the plaintiffs assert that Subnautica 2 was ready for its planned early access launch. The legal filings highlight discrepancies in the narratives presented by both parties, particularly regarding the state of the game and the motivations behind the leadership changes.
What's Next
The legal battle is set to continue, with a trial scheduled to begin on November 17, 2025, at the Delaware Chancery Court. The outcome of this case could have significant implications for both Krafton and the future of Subnautica 2, as well as for the gaming industry's approach to acquisitions and earnout agreements.
Verbatim Quotes
- “Desperate to avoid such a professional embarrassment, Kim obsessed over finding a way to avoid Krafton's obligation to pay the earnout.” — Pre-trial brief
- “Kim obsessed over finding a way to avoid Krafton's obligation to pay the earnout. [Maria] Park told Kim that 'it seems to be highly likely that the earn-out will still be paid if the sales goal is achieved regardless of the dismissal with cause.'” — Maria Park, Krafton head of corporate development
- “ Ultimately, the legal team representing Cleveland, McGuire, and Gill asserts that Krafton has failed to provide a clear and consistent justification as to why the trio were fired and is demanding all three be restored to their positions at Unknown Worlds.” — Pre-trial brief
- “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,” — Krafton representative
