Krafton Reaches Settlement with Subnautica 2 Developer Following Lengthy $250 Million Dispute

After a protracted legal battle, Krafton has reached a settlement with its subsidiary, Unknown Worlds Entertainment, the team behind Subnautica 2, and will be distributing bonuses to the studio’s employees.

The conflict began last year when Krafton removed Unknown Worlds’ cofounders, Charlie Cleveland and Max McGuire, along with CEO Ted Gill, just before a potential $250 million bonus tied to financial milestones that would have benefited the studio. Following a lawsuit from the executives, a judge reinstated Gill as CEO in March, and Subnautica 2 launched in early access in May, quickly selling over four million copies within five days.

While the specifics of the settlement remain under wraps, Krafton confirmed that all parties involved have agreed to dismiss ongoing legal actions. Bonuses will be awarded to all staff at Unknown Worlds, not just those present at the time of Krafton’s acquisition in 2021, and will be distributed in three annual payments. However, Gill will be departing from the studio, stating, “We mutually agreed to part ways. New leadership is the best way for the studio to move forward.”