Krafton and Unknown Worlds have reached a settlement ending their legal battle over a $250 million bonus tied to Subnautica 2's performance, Krafton said today [1, 2, 3, 4, 5, 6, 7]. Krafton will pay bonuses to all employees of Unknown Worlds, including those who joined after Krafton acquired the studio in 2021 for $500 million. The payouts will be spread over three yearly installments [1, 2, 4, 6, 7].
The legal conflict began in July 2025 after Krafton fired Unknown Worlds CEO Ted Gill and the studio's co-founders, and delayed the Subnautica 2 early access launch, triggering a lawsuit [1, 3, 4, 5, 6, 7]. In March 2026, a Delaware judge ordered Gill's reinstatement and extended the bonus earnout period [1, 3, 6, 7]. Subnautica 2 launched early access on May 14, 2026, selling over 1 million copies in its first hour and more than 4 million copies in about seven weeks across PC and Xbox platforms, including Xbox Game Pass [1, 2, 3, 4].
Following the settlement, Gill voluntarily stepped down as CEO. He said, "New leadership is the best way for the studio to move forward," adding a new CEO from outside Krafton and Unknown Worlds will be sought [1, 2, 7]. Gill also said the teams will be "compensated significantly more" than expected and will receive "further incentives" as the game continues its early access journey [1].
Krafton confirmed all pending legal proceedings between itself, Unknown Worlds, and the fired executives were dismissed. A Krafton statement emphasized support for Subnautica 2 and its global player community, with Unknown Worlds remaining the lead developer and Krafton providing backing for the game's success [3].
Krafton's CEO Changhan Kim reportedly consulted ChatGPT on legal strategies during the dispute, viewing the bonus deal as a "bad deal" [3, 6]. Subnautica 2 peaked at 467,000 concurrent players on Steam during its early access period [3].
The settlement ends months of litigation that began after Krafton's July 2025 firings and delays. Unknown Worlds will continue development on Subnautica 2 with Krafton's support, while the bonus payments will be made over the next three years [1, 2, 4, 6, 7].
