The game surpassed 4 million sales in five days, reviving concerns over a large earn-out payment tied to its success.
A legal dispute with former Unknown Worlds executives is also weighing on Krafton’s global reputation.
Subnautica 2
[Insight Korea = Shin Kwang-ryeol]
Krafton’s highly anticipated global title Subnautica 2 has become a major hit immediately after release, drawing attention across the global gaming market. But inside Krafton, the mood may not be as bright as the sales figures suggest.
According to Krafton on the 21st, Subnautica 2 sold 1 million copies soon after its early access launch and surpassed 2 million copies within 12 hours. Within five days of release, global cumulative sales topped 4 million copies. On Steam, the game reached a peak concurrent user count of 467,000, while daily active users reached 1.3 million.
Steam reviews have also remained strong. Of more than 73,000 user reviews, 91 percent are positive, keeping the game in the “Very Positive” category. Analysts say the success has been driven by its four-player co-op system, Unreal Engine 5-based graphics and exploration-survival structure that works well for streamers.
However, market observers say the success may not be entirely welcome for Krafton. A large earn-out agreement signed during Krafton’s acquisition of U.S. developer Unknown Worlds has resurfaced as a financial concern.
At the time, Krafton is known to have agreed to pay up to $250 million, or about 370 billion won, in additional performance-based compensation tied to the results of Subnautica 2, on top of a base acquisition price of about $500 million.
The two sides later clashed over performance compensation and the release schedule. Recently, the Delaware Court of Chancery sided with former Unknown Worlds executives, ordering the reinstatement of former CEO Ted Gill and the restoration of authority to release *Subnautica 2* in early access.
Recently disclosed court documents from Delaware drew market attention by referring to a structure in which revenue exceeding a certain threshold, about $69.8 million, would be subject to a high multiplier. Based only on the publicly disclosed figures, some market participants say a significant portion of additional revenue in certain sales ranges could be directed to performance compensation for the former management team.
Industry observers say that with sales already reaching around 4 million copies, Krafton may be approaching the earn-out cap or may already have entered a range where a substantial portion of the earn-out is reflected. Court documents are also said to show that Krafton internally worried at the time that if Subnautica 2 became a major hit, the earn-out payment could approach the enterprise value of Unknown Worlds itself.
If the maximum $250 million, or about 370 billion won, becomes payable, Krafton would have to pay an amount equivalent to about 30 percent of its 2025 annual operating profit of 1.0544 trillion won. As a result, the market is watching whether related provisions or expenses will become a key issue in future earnings announcements. Some analysts say that, based on the current 4 million sales level, the game may need to sell several million additional copies to offset the burden.
Global Sentiment Becomes a Bigger Burden Than the Hit Itself
There is also a view that the game’s success could actually hurt Krafton’s global corporate image. The dispute over performance compensation and the legal conflict have already become known across overseas gaming communities.
Krafton previously said it had dismissed some Unknown Worlds executives for neglecting their duties. But according to documents from the Delaware court, Krafton internally formed a task force called “Project X” to review ways to renegotiate the earn-out and secure operational control over Unknown Worlds.
During the legal dispute, foreign media also reported signs that Krafton used generative AI to review internal communications and response drafts. This has fueled negative sentiment, particularly in overseas gaming communities. On Reddit, one of the largest U.S. gaming communities, posts and comments expressing hope that the developers would become independent and escape Krafton’s influence received strong support.
The fact that the Subnautica series is a representative indie success story built on user feedback and a developer-centered operating culture is also a burden for Krafton. U.S. gaming communities tend to be strongly supportive of indie developers and creators, and the partial disclosure of Krafton’s internal response through court documents has made it easier for negative sentiment to spread. The bigger the game’s success becomes, the more the conflict between Krafton and the developers is being reexamined, hurting the company’s image.
“For Krafton, the issue may be less about the performance payment itself and more about trust with key global development talent and the impact on future overseas studio acquisition strategies,” one industry official said.
“This case could remain a representative example of the cultural and management conflicts that can arise during post-merger integration after a global game company’s acquisition,” the official added.
- This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)
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