Subnautica 2 Controversy Deepens Following CEO’s Response to Early Access News

The ongoing legal saga surrounding Subnautica 2 continues to unfold. Recently, a judge mandated that Krafton reinstate Ted Gill, the CEO of developer Unknown Worlds Entertainment, who was dismissed along with other executives last summer. Shortly after, Steve Papoutsis, who took over as CEO following Gill’s departure, sent out an internal memo announcing that Subnautica 2 is set to enter early access in May, a detail first highlighted by an outlet.

This announcement has sparked further complications. Reports indicate that Gill’s legal team sent a letter to the judge expressing concerns that the early access announcement could harm the game and create confusion within the Subnautica community. Gill’s contention lies not with the May release itself, but with how the information was communicated.

As of Monday morning, Gill has resumed his role as CEO of Unknown Worlds Entertainment. Importantly, the judge’s order not only reinstated him but also prohibited Krafton from interfering with his authority regarding the early access launch of Subnautica 2. The memo from Papoutsis is now a focal point of contention, as he may not have had the authority to issue it. Gill’s lawyers questioned whether Krafton had “intentionally leaked” the announcement, which Krafton confirmed was accurate in a statement.

Gill’s legal team argued that Krafton announced the launch without considering its effects on the game, the team, or the community, and that such announcements should have been managed by Gill. They criticized Krafton for undermining the process with a lackluster announcement.

Krafton’s legal representatives countered, asserting that Gill, as CEO, would independently evaluate the state of Subnautica 2 and determine the release schedule, claiming that Papoutsis’s memo did not alter Gill’s authority.

Following the report, Gill’s lawyers filed a motion expressing their discontent with the May launch announcement and requested the judge to compel Krafton to justify its actions, arguing that Krafton’s behavior has jeopardized the relief sought in the ongoing litigation.

They pointed out that Krafton continued to confirm the May launch to other outlets, putting Gill in a difficult position before he could assess the developers’ efforts. Gill had only been back in his role for a short time when the news of the May early access release began to circulate. Krafton, in its own filing, argued against Gill’s immediate reinstatement, suggesting he should not resume his role until an “implementing order” is finalized.

Gill now finds himself in a challenging situation. He should ideally be the one to dictate Subnautica 2’s release strategy and announcements. However, with the early access launch seemingly set for May, he faces the dilemma of potentially disappointing fans who have eagerly awaited this sequel.

Gill and his legal team are acutely aware of the stakes involved. They noted that he must navigate publishing agreements, launch advertising, and other logistical matters, all while facing the risk of fan disappointment if he alters the launch timeline.

Additionally, there’s the potential for a $250 million payout if Unknown Worlds Entertainment meets specific revenue targets, which could lead to significant bonuses for the staff. The payout window has been extended to September 15, with the possibility of further extensions.

For now, Subnautica 2 is slated for early access in May on Windows PC and Xbox Series X. It remains to be seen whether Gill and Unknown Worlds will adjust that timeline.