Krafton settles with Subnautica 2 developers over unpaid bonuses

Krafton and Unknown Worlds Entertainment have reached a full settlement in their ongoing legal dispute over earn-out bonuses. Bloomberg reports that the agreement follows the massive success of Subnautica 2, which has sold over four million copies since its Early Access launch. The resolution guarantees bonus payouts for all studio employees and includes the amicable departure of Unknown Worlds CEO Ted Gill.

The conflict began after Krafton acquired the independent studio in 2021. Unknown Worlds built a massive following with the original Subnautica in 2018. The game defined the modern underwater survival genre. The acquisition deal included performance-based earn-out bonuses reportedly capped at $250 million. By the summer of 2025, Krafton attempted to avoid paying out those bonuses by firing Gill and other key staff under allegations of data mismanagement and dereliction of duty.

A very expensive AI prompt

The situation escalated into a messy courtroom battle that exposed Krafton's internal communications. Japanese outlet 4Gamer summarized the court findings, which revealed Krafton's attempts to seize control of the studio's management rights by unjustly dismissing Gill and other key staff under allegations of dereliction of duty and illegal internal data downloads.

It did not work out for them. In March 2026, the court ordered Krafton to reinstate Gill immediately and return full creative control of Subnautica 2 to Unknown Worlds.

Four million copies in two months

With Gill back at the helm, Subnautica 2 launched into Early Access in May 2026 across PC and Xbox Series X/S. The sequel introduced official co-op multiplayer. The community had been requesting that feature for nearly a decade. The game was an immediate commercial hit. Hitting four million sales in roughly two months destroyed any argument that the studio's leadership was mismanaging the project.

That commercial victory forced Krafton back to the negotiating table. Under the new settlement terms, the bonus money will flow to the entire Unknown Worlds staff. This payout includes recent hires who joined the company long after the initial 2021 acquisition. It is a rare absolute win for a development team in an industry where studio acquisitions often end in closures or mass layoffs.

Time for a new CEO

The final piece of the settlement involves Gill stepping down from his role as CEO. Unlike his forced termination last year, this exit is entirely amicable. Gill stated that new leadership is the best path forward for the studio as it continues to grow. Unknown Worlds will bring in an external candidate to fill the position.

The team started out making the popular Half-Life mod Natural Selection in 2002. They later built a standalone sequel before shifting entirely to underwater survival. Managing a highly anticipated Early Access period is difficult enough without a corporate parent trying to orchestrate a hostile takeover. Now that the legal fight is over, the development team can just focus on finishing the game.