Krafton Inc. Faces Legal Challenges Amidst Subnautica 2 Dispute
Krafton Inc., a leading South Korean game development company known for its popular battle royale game “PUBG: BATTLEGROUNDS,” is currently embroiled in a legal dispute with the co-founders of Subnautica studio, Unknown Worlds. The conflict has escalated rapidly, with significant financial implications and leadership changes at the forefront.
On July 11, 2025, multiple sources reported that the co-founder of Subnautica studio has filed a lawsuit against Krafton. The dispute centers around a promised $250 million bonus for the development of “Subnautica 2,” which Krafton allegedly withheld. This legal battle has been described as a “betrayal” by the former managers of Unknown Worlds, highlighting the severity of the accusations.
In response to the lawsuit, Krafton has publicly addressed the situation, defending its actions and asserting that it will fulfill its financial commitments to the developers. The company has also announced leadership changes at Unknown Worlds, further complicating the situation.
The ongoing legal and financial turmoil has led Krafton to delay the release of “Subnautica 2” to 2026. This decision underscores the impact of the dispute on the company’s operations and future plans.
Despite these challenges, Krafton remains focused on its core offerings, including “PUBG: BATTLEGROUNDS” and its in-house development studio inZoni (inZOI). At Gamescom 2025, Krafton emphasized its commitment to these projects, showcasing its strategy to maintain its position in the competitive gaming industry.
Financially, Krafton’s stock has experienced fluctuations, with a close price of 359,500 KRW on July 3, 2025. The company’s market capitalization stands at 17.32 trillion KRW, reflecting its significant presence in the market despite the current challenges.
As the legal proceedings continue, Krafton’s ability to navigate these disputes and uphold its financial promises will be crucial in maintaining investor confidence and its reputation in the gaming community.