Unknown Worlds
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Weekly Gaming Reports Recap: July 13 - July 17, 2026
The global gaming industry in mid-2026 is defined by a profound divergence in platform performance and investment sentiment.
- Steam generated $11.1 billion in gross revenue during H1 2026, marking a 14.5% year-over-year increase and nearly matching the platform's total revenue for the entire year of 2021.
- Private investment in the gaming sector reached $3.1 billion in Q2 2026, a nearly 6x year-over-year increase driven largely by a $1 billion round for AppsFlyer and significant capital flowing into AI-focused companies.
- Series A funding reached a five-year high of $0.8 billion in Q2 2026 (up 530% year-over-year), while pre-seed and seed funding dropped to a multi-year low of $0.1 billion (down 56% year-over-year).
Box Out: #384
The gaming industry is undergoing a significant transition as Sony announced that, effective January 2028, it will cease the production of physical game discs for its consoles.
- Sony announced that PlayStation games will no longer be released on physical discs starting January 2028, following a trend seen with Rockstar's GTAVI offering a download code in a box and Sony's discless PS5 version in 2020.
- Sony removed over 550 movies from its download store and is closing the PS3 and Vita download stores by July 2027, preventing buyers from accessing previously purchased content.
- Microsoft is reportedly developing a 'disc-to-digital' scheme for its next Xbox (Project Helix) that would allow users to convert physical Xbox Series and some Xbox One games into digital licenses.
The UK Government's AI Adoption Plan for Creative Industries
The United Kingdom government has released a new AI adoption plan specifically targeting the creative industries, marking a significant development in the national strategy for integrating artificial intelligence into the screen and media sectors.
- The UK government's 'AI Champion' initiative has released its initial reports, advocating for an 'augmentation first' approach to AI in creative industries, rather than replacement.
- The UK Intellectual Property Office (IPO), in collaboration with DSIT and DCMS, launched an open consultation in December 2024 regarding copyright in the age of AI.
- The January 2025 consultation proposed that all UK-produced intellectual property would be freely available to AI companies unless creators opted out, a system criticized as impractical.
Games and Numbers: May 20 – June 2, 2026
The bi-weekly snapshot covers major milestones for PC, console, and mobile titles released between May 20 and June 2, 2026.
- Forza Horizon 6 generated over $325 million in revenue from 5 million copies sold in its opening days, bolstered by 1.7 million premium early-access purchases.
- Subnautica 2 became the fastest PC launch of 2026, reaching 4.1 million sales and $100 million in revenue within five days, with a total reach of 6.5 million including Game Pass users.
- Star Citizen has officially surpassed $1 billion in total crowdfunding, supported by 6.56 million backers since development began in 2010.
KRAFTON Will Indeed Pay the Creators of Subnautica 2 $250 Million
The South Korean publisher KRAFTON has committed to paying a $250 million performance bonus to the studio Unknown Worlds, following the successful early access launch of Subnautica 2.
- KRAFTON has agreed to pay a $250 million performance bonus to Unknown Worlds following the successful launch of Subnautica 2.
- Subnautica 2 sold over 4 million copies within its first five days of early access, which began on May 14, 2026.
- Analysts estimate that Subnautica 2 generated $100 million in gross revenue during its first five days on the market.
Three Notes About Subnautica 2
Subnautica 2 launched into early access on Thursday, delivering a polished underwater survival experience that echoes its predecessor while expanding the ecosystem and gameplay loop.
- Subnautica 2 achieved strong early access performance with two million copies sold on its first day and a peak of 467,000 concurrent Steam players.
- Unknown Worlds intends to keep Subnautica 2 in early access for at least two years, maintaining cross-play and feature parity across PC, Steam, Epic Games Store, and Xbox.
- Publisher Krafton is navigating a legal dispute involving former studio leaders Charlie Cleveland and Max McGuire while simultaneously leveraging the game's strong sales milestones in its public branding.
New Dispute Emerges Around Subnautica 2’s Early Access Release
A legal dispute has intensified between publisher Krafton and the leadership of Unknown Worlds regarding the upcoming early access release of Subnautica 2.
- A Delaware Court of Chancery ruling in March 2026 found Krafton in breach of contract for firing Unknown Worlds' executive team to avoid paying performance-based bonuses.
- The court ordered the reinstatement of the original Unknown Worlds leadership, including CEO Ted Gill, to restore their authority over the studio.
- Unknown Worlds' leadership has filed motions to hold Krafton in contempt, alleging the publisher unilaterally announced a May 2026 early access release for Subnautica 2 without authorization.
“If we can survive that, we can survive anything“
Veteran game developer Don Daglow offers a perspective of resilience for the modern video game industry, which is currently navigating a period of significant instability marked by widespread layoffs and studio closures.
- The Delaware Court of Chancery ordered Krafton to reinstate Unknown Worlds CEO Ted Gill, ruling that the parent company breached its contract to avoid paying up to $250 million in performance-based incentives.
- The court found that interim management at Unknown Worlds negatively impacted studio operations, necessitating the return of original leadership to stabilize the studio and ensure the release of the Subnautica sequel.
- The head of Disney Games Group has filed a $40 million discrimination lawsuit, highlighting ongoing industry-wide scrutiny regarding corporate governance and labor practices.
Unknown Worlds Files Lawsuit Against Former Executives Over Data Theft and Sabotage
Unknown Worlds has initiated legal action against three former executives—Charlie Cleveland, Ted Gill, and Max McGuire—following their dismissal from the studio.
- Unknown Worlds has filed a lawsuit against three former executives—Charlie Cleveland, Ted Gill, and Max McGuire—alleging the theft of 172,000 confidential files, including intellectual property, business records, and internal correspondence.
- The studio claims the former executives neglected the development of Subnautica 2 to focus on personal projects, causing significant delays.
- Unknown Worlds alleges that the executives pushed for an incomplete release of Subnautica 2 in an attempt to trigger $250 million in performance bonuses from parent company KRAFTON.
Duty Calls
In October 2021, Activision Blizzard CEO Bobby Kotick announced a series of corporate reforms aimed at addressing a major sexual harassment scandal and improving the company’s internal culture.
- Activision Blizzard CEO Bobby Kotick has pledged to waive his salary, bonuses, and equity awards until the company meets specific diversity targets, accepting only California's minimum wage of $62,500 in the interim.
- The company committed to increasing the percentage of women and non-binary employees by 50% and has pledged $250 million toward broader diversity initiatives.
- Activision Blizzard will end the practice of forced arbitration for employee grievances and implement a zero-tolerance policy for harassment, resulting in immediate termination for violations.
Krafton to Submit IPO Application This Month
Krafton, the South Korean developer and publisher behind the PUBG franchise, has navigated significant corporate milestones between 2021 and 2026.
- Krafton reported $1.49 billion in 2020 revenue, a 54% year-over-year increase, with operating profits rising 115% to $690 million.
- In 2020, Krafton's mobile revenue reached $1.2 billion, representing a 145% year-over-year increase, while PC and console revenue declined 41% to $237 million.
- Krafton is set to pay a $250 million performance bonus to Unknown Worlds following the successful early access launch of Subnautica 2, which sold over 4 million copies in its first five days.
