Krafton Inc. Faces Legal Challenges Amid Subnautica 2 Delay
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 founders of the studio behind “Subnautica 2.” The conflict has led to significant delays in the game’s development, drawing attention from the gaming community and industry observers.
On July 13, 2025, Krafton publicly blamed the ousted founders of the studio, Unknown Worlds, for the delay in the release of “Subnautica 2.” This announcement came shortly after reports emerged that a co-founder of the studio had filed a lawsuit against Krafton. The lawsuit, as reported by Engadget on July 11, 2025, alleges grievances against the parent company, highlighting a deepening rift between the two parties.
The dispute has been described as a “slam battle” by Gameswirtschaft, with Krafton defending itself against claims involving a substantial sum of 250 million US dollars. The company has addressed leadership changes at Unknown Worlds, which have been a focal point of the controversy. According to GamesIndustry.biz, former executives have filed a lawsuit against Krafton, accusing the company of betrayal, as reported by Heise.de.
The escalating conflict has raised concerns about the future of “Subnautica 2” and the potential impact on Krafton’s reputation and financial performance. As of July 3, 2025, Krafton’s stock was trading at 359,500 KRW, with a market capitalization of 16.7289 trillion KRW. The company’s price-to-earnings ratio stood at 12.19, reflecting investor sentiment amidst the ongoing legal challenges.
Krafton’s situation underscores the complexities of corporate acquisitions and the importance of maintaining positive relationships with acquired entities. As the legal proceedings unfold, the gaming community and investors will be closely monitoring the developments and their implications for Krafton’s future projects and market position.