Subnautica 2 Developers Sue Tencent-Linked Studio Over Delay (1)

A Korean video game studio linked to Chinese tech giant Tencent stoked a damaging customer backlash by postponing a hotly anticipated release to avoid paying its developers $250 million, according to a lawsuit unsealed Wednesday.

Three founders of Unknown Worlds Entertainment are suing its acquirer, Krafton Inc., saying the South Korean gaming conglomerate “gravely miscalculated” by sabotaging the 2025 release of the blockbuster Subnautica franchise’s next installment. The move—aimed at dodging “earnout” payments pegged to revenue milestones—breached deal terms giving the co-founders operational control over the sequel, according to the court complaint.

The 2021 sale agreement involved an upfront ...