Krafton has reached a settlement with the leadership of Subnautica 2 developer Unknown Worlds Entertainment, ending their legal dispute and confirming that studio staff will receive their bonuses. According to Bloomberg, the agreement also includes the departure of Unknown Worlds CEO Ted Gill, with the company now beginning the search for a new chief executive.
Mutual Dismissal of Legal Proceedings
In a statement provided to IGN, Krafton confirmed the settlement and said all pending legal proceedings had been dismissed by mutual agreement. "Krafton, Inc., Unknown Worlds Entertainment and Ted Gill, Charlie Cleveland, and Max McGuire have reached a mutual settlement and agreed to dismiss all pending legal proceedings," the company said. "Unknown Worlds and Krafton are focused on supporting Subnautica 2, its Early Access journey to the full 1.0 release and the global community that has made the franchise so special. Unknown Worlds will continue leading development, with Krafton providing support for the success of the game."
Background of the Dispute
The settlement follows months of legal proceedings that began after Krafton dismissed Gill and Unknown Worlds co-founders Charlie Cleveland and Max McGuire last year. At the time, Krafton said the game's Early Access launch had been delayed and attributed responsibility to Gill. The former executives responded with a lawsuit, alleging they had been removed to avoid a reported $250 million bonus linked to performance targets.
Court Rulings and Internal Discussions
Earlier this year, a Delaware court ordered Gill's reinstatement and ruled that the proposed bonus should be extended to studio staff. Court proceedings also revealed internal discussions within Krafton surrounding the earnout agreement, including evidence that company executives explored options for renegotiating or avoiding the payment before the dispute escalated. Meanwhile, development of Subnautica 2 continues through Early Access.
