Subnautica 2 Legal Battle Ends: $250M Bonus Settlement Reported
A years-long legal standoff between Subnautica 2 developer Unknown Worlds Entertainment and publisher Krafton has reportedly wrapped up, putting a lid on one of the most chaotic periods in the companies’ relationship. After months of court wrangling over a $250 million incentive bonus tied to Subnautica 2, the parties have reached a settlement that includes bonus payments for the studio’s staff, alongside a leadership change for Unknown Worlds.
The dispute traces back to Krafton’s acquisition of Unknown Worlds in 2021, which included a potential $250 million earnout. In 2025, Krafton dismissed CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire, alleging they failed to meet their responsibilities. The executives responded by filing a lawsuit claiming Krafton delayed Subnautica 2 and removed them from leadership specifically to avoid paying the bonus. Earlier this year, a judge ordered Gill reinstated as CEO while the litigation continued.
Oxygen, food, scanning, and exploration can all feel like a lot when you’re just getting started in Subnautica 2. Here are 10 beginner tips we wish we’d learned sooner.
Every Unknown Worlds Employee Will Receive a Bonus
Reports indicate Krafton has now settled with Gill and Unknown Worlds’ co-founders, effectively ending the legal conflict and expanding the incentive plan. Instead of restricting payouts to staff who met the requirements of the original acquisition arrangement, the settlement provides that every employee at Unknown Worlds will receive a bonus—including developers hired after the 2021 deal.
Identify the cover art while scratching off as little foil as possible.
Gill said the compensation will be “significantly more” than what was originally expected, with bonus money delivered in three yearly installments. He also noted that additional incentives will be tied in as Subnautica 2 continues to receive updates. Under the terms of the settlement, Gill is stepping down as CEO. He stated that both sides agreed new leadership is the best route for the studio going forward.
Unknown Worlds Entertainment will begin looking for a new chief executive from outside both the studio and Krafton. Gill’s return to UWE was ordered by a judge in March, and that same ruling placed him in charge of ensuring the correct early access release of Subnautica 2. While the timing may surprise some, the move is framed as beneficial for Gill, the studio, and the game itself.
Build your perfect top ten one reveal at a time.
What This Means for the Game and the Studio
For Subnautica 2, the settlement removes a major cloud hanging over its early access rollout, despite the game’s commercial success. More broadly, it closes a pivotal chapter for both Krafton and Unknown Worlds, ending the extended leadership turmoil, legal uncertainty, and acquisition-related tensions. With a new CEO search underway and the studio shifting into a different structure, both companies are heading into a fresh phase and hoping the focus can return to making games.
Your blind ranking is locked in.
Pick two spots to swap before locking in your final ranking.
