The long-running legal battle surrounding Subnautica 2 has officially come to an end after publisher Krafton and Unknown Worlds Entertainment reached a settlement that resolves their dispute over a $250 million incentive program.
According to Bloomberg, the agreement expands bonus eligibility to every employee at the studio and marks the departure of Ted Gill as CEO, closing a turbulent chapter for the developer behind the popular underwater survival series.
The conflict dates back to Krafton’s 2021 acquisition of Unknown Worlds, which included a potential earnout worth up to $250 million. In 2025, Krafton removed Gill and studio co-founders Charlie Cleveland and Max McGuire from leadership, alleging they had failed to fulfill their responsibilities.
The former executives filed a lawsuit, claiming Krafton delayed Subnautica 2 and removed them to avoid paying the incentive bonus. Earlier this year, a judge reinstated Gill as CEO while the legal proceedings continued.
Settlement Expands Bonus Program for Entire Studio
The new agreement significantly broadens the original incentive plan. Rather than limiting payments to employees who qualified under the acquisition terms, every developer at Unknown Worlds, including those hired after the 2021 acquisition, will now receive bonus payments.
Speaking to Bloomberg, Gill said employees will receive “significantly more” than originally planned. He added that the payouts will be distributed in three annual installments, alongside additional incentives as Subnautica 2 continues to receive post-launch updates.
The settlement removes one of the biggest uncertainties surrounding the studio, allowing developers to shift their focus back to supporting the game’s Early Access development.
Unknown Worlds Enters a New Chapter
As part of the agreement, Gill confirmed he will step down as CEO, saying both parties mutually agreed that new leadership is the best path forward. Unknown Worlds will now begin searching for a new chief executive from outside both the studio and Krafton.
The resolution comes shortly after Unknown Worlds revealed a new Subnautica 2 development roadmap featuring upcoming content such as proximity chat, the return of the PRAWN Suit, a new explorable region, and the Collector Leviathan.
With the legal dispute resolved and leadership changes underway, both Krafton and Unknown Worlds appear ready to move beyond the controversy and focus on the future of Subnautica 2.
