The publisher fired back at reporting that suggested it delayed Subnautica 2 to avoid paying out employee bonuses.

Unknown Worlds co-founder Charlie Cleveland claims he is suing parent company Krafton amid recent developments at the studio.

Since the report, Krafton has released a testy statement on the Subnautica 2 ordeal. “We are deeply disappointed by the former leadership’s conduct, and above all, we feel a profound sense of betrayal by their failure to honor the trust placed in them by our fans,” a Krafton representative told Polygon.

The former leadership of Subnautica 2 studio, Unknown Worlds, has announced the filing of a breach of contract lawsuit against Krafton as controversy continues.

The founders of Subnautica 2 studio Unknown Worlds, Charlie Cleveland and Max McGuire, along with former CEO Ted Gill, are filing a lawsuit against parent company Krafton amid an increasingly bitter row over a $250 million bonus.

South Korean video-game publisher Krafton Inc. is delaying the release of the highly anticipated survival game Subnautica 2 just months before it was due to pay a $250 million bonus to the development team.

Krafton accuses former Unknown Worlds leadership of abandoning Subnautica 2, escalating a bitter dispute over bonuses, delays, and trust.

The fallout from Krafton's firing of Unknown Worlds founders and execs last week and the delay of Subnautica 2 has already been pretty wild and messy, but