Krafton settlement – After a chaotic legal standoff over Subnautica 2’s leadership and timing, Krafton and Unknown Worlds Entertainment have reached a settlement. Krafton will pay bonuses to all studio staff, and Ted Gill will leave his CEO role again as the company moves forward
For the second time, Ted Gill is walking away from the Unknown Worlds CEO seat.
This time, it’s not tied to a fresh courtroom fight. Krafton and the leadership of the Subnautica 2 developer. Unknown Worlds Entertainment. have reached a settlement that brings an end to the messy dispute and sets a clear direction for the studio’s next chapter. Under the deal. Krafton will pay bonuses to all staffers at the studio. and Gill will once again be leaving his post as CEO.
“We mutually agreed to part ways,” Gill told Bloomberg. “New leadership is the best way for the studio to move forward.” Gill added that whoever takes over as CEO will be an external hire.
The settlement lands after a summer of escalation. Krafton ousted Gill and the co-founders of Unknown Worlds—Charlie Cleveland and Max McGuire—last summer. The trio then sued Krafton. accusing the company of firing them and delaying Subnautica 2 to 2026 in order to avoid paying $250 million in bonuses if certain revenue thresholds were reached.
A judge intervened in March, ordering Krafton to rehire Gill as CEO. Soon after, Subnautica 2 reached early access in May.
That early access launch proved pivotal. The co-op survival game sold well enough—more than 4 million copies so far—to trigger the bonus payout tied to the acquisition agreement Krafton signed when it bought the developer in 2021.
Gill says the end result will go beyond what the initial deal required. He told Bloomberg that the development team will be “compensated significantly more” than the original terms, with “further incentives” connected to the future success of Subnautica 2.
The timing of the money matters, too. Bloomberg reports that all Unknown Worlds staff—meaning not just those employed at the time of the acquisition—will receive bonuses. Those payments will be made in three annual installments.
Krafton. Inc. Unknown Worlds Entertainment. and Ted Gill. Charlie Cleveland. and Max McGuire agreed to close the legal chapter at the same time. In a statement to Engadget. Krafton said. “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.”.
Krafton also framed the settlement as a pivot back to the game. It said the companies are focused on supporting Subnautica 2. including its Early Access journey to the full 1.0 release and the global community that has built the franchise. The statement added that Unknown Worlds will continue leading development, with Krafton providing support for the game’s success.
Krafton Unknown Worlds Entertainment Ted Gill Subnautica 2 settlement bonuses early access CEO departure Charlie Cleveland Max McGuire
So basically CEO drama got settled and I guess we get Subnautica 2 eventually? Cool I guess.
I don’t get why they fired people then had to rehire him?? Like how is that a “timing” thing. Also 4 million copies?? That’s wild. Pay the devs and stop the lawsuits already.
Wait so the judge ordered them to rehire the CEO and THEN he quit again anyway? Sounds like they never really planned to keep him. Also I saw somewhere it was delayed to avoid paying bonuses… but isn’t that what CEOs do, delay stuff until it’s convenient? idk.
This is why I don’t trust game companies, all this legal mess over who’s steering the ship. Like they say “new leadership” but it’s always the same people getting paid to leave. If they’re paying bonuses to everyone, that sounds like they screwed up and now they’re just trying to smooth it over before 2026. I’m just hoping the game is actually good now.