Judge Orders Reinstatement of Subnautica 2 Studio CEO After Dismissal by Krafton

Subnautica 2, the highly anticipated follow-up to 2018’s Subnautica, was first announced to be in development back in 2022. Fans have been eagerly waiting for its release, but a complicated legal dispute involving a hefty $250 million payout has delayed the game from its originally planned early access launch in 2025. This turmoil includes Krafton, the company that acquired Subnautica 2 developer Unknown Worlds Entertainment in 2021, which led to the firing of the studio’s CEO and other key leaders. Recently, a judge has mandated that Krafton must reinstate the CEO it dismissed last July.

On Monday, Vice Chancellor Lori W. Will of the Delaware Chancery Court ruled that Krafton must bring back Ted Gill as CEO of Unknown Worlds Entertainment. She stated that “Krafton breached the EPA by terminating the Key Employees without valid Cause and by improperly seizing operational control of Unknown Worlds.” The judge also instructed Krafton not to interfere with Gill’s “authority over the early access launch of Subnautica 2.”

In addition, there’s positive news for director Charlie Cleveland and co-founder Max McGuire, who were also let go by Krafton. The judge has extended the window for the $250 million bonus payout until September 15, with the possibility of further extensions.

This ruling is a significant victory for the dismissed executives, especially after reports that Krafton allegedly sought advice from ChatGPT on how to avoid paying the bonus, which was linked to revenue targets for 2025. Krafton’s postponement of Subnautica 2, attributed to quality concerns, would have made meeting those targets nearly impossible. Cleveland previously mentioned on Reddit that the studio believed “the game is ready for early access release and we know you’re ready to play it.”

Krafton, predictably, expressed dissatisfaction with the judge’s ruling. “While we respectfully disagree with today’s ruling, we are evaluating our options as we determine our path forward. Today’s ruling does not resolve the former executives’ claim for damages or an earnout related to Subnautica 2, with further litigation still pending,” the company stated.

As of now, Subnautica 2 does not have a set early access launch date. It remains to be seen if Gill’s return as CEO will impact that timeline.