Krafton Settles Legal Battle With Unknown Worlds Over Subnautica 2 Bonuses

A year-long legal standoff between publisher Krafton Inc. and developer Unknown Worlds has officially come to an end. The two companies have reached a settlement that guarantees bonus payments for every member of the studio's staff, effectively resolving the conflict sparked by the successful launch of Subnautica 2.

The Origins of the Conflict

The relationship between the publisher and developer soured in July 2025 when Krafton terminated Unknown Worlds co-founder and CEO Ted Gill, alongside other senior staff. The dismissals occurred amidst reports that Krafton sought to avoid a $250 million payout tied to performance-based sales targets for Subnautica 2. These internal tensions were widely cited as the primary driver behind the game's delay from 2025 to its eventual May 2026 release.

Following their termination, Gill and the affected staff filed a lawsuit against Krafton. The legal proceedings took a turn when a judge ruled in favor of the fired employees, ordering their reinstatement after testimony alleged that Krafton CEO Changhan Kim had utilized ChatGPT to brainstorm methods to evade the contractually obligated payout.

Settlement Details and Leadership Changes

The settlement announced this week ensures that the development team is compensated for the game's success. In an interview with Bloomberg, the outgoing CEO Ted Gill noted that the team would be “compensated significantly more” than what was stipulated in the original 2021 acquisition agreement. Notably, while the initial deal only accounted for senior executive payouts, this settlement extends to every employee at the studio, with further incentives planned throughout the game's lifecycle.

Despite the resolution, the leadership structure at Unknown Worlds is set to shift. Ted Gill confirmed he will step down from his role just four months after his return to the company. Gill described the move as a mutual agreement, stating that he believes new leadership is the best way for the studio to move forward. The company intends to appoint a new CEO from outside of both Krafton and Unknown Worlds.

Subnautica 2currently available in early access on PC and Xbox Series S/X, has proven to be a commercial success, reaching over four million copies sold. The developer continues to work toward a full launch, with more updates expected in the coming months.