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Full Breakdown

Krafton Settles $250 Million Subnautica 2 Bonus Dispute, CEO Departs

7/2/2026, 11:41:19 AM

Settlement Overview

Krafton, Inc. and Unknown Worlds Entertainment reached a June 2026 settlement that ends all litigation over a $250 million earnout tied to Subnautica 2, extends the bonus to every employee, and sees CEO Ted Gill resign.

Reinstated Subnautica 2 studio CEO immediately peaces out after Krafton agrees to pay the developer bonuses it went to court to avoidEngadgetKrafton and Subnautica 2 dev have reached a mutual settlementSubnautica 2 studio Unknown Worlds' CEO resigns as Krafton agrees to pay $250m bonusThe VergeIGN Entertainment

Background & Chronology

  • 2021 – Krafton buys Unknown Worlds for $500 M; $250 M earnout added.
IGN Entertainment
  • Summer 2025 – Krafton fires CEO Ted Gill and co-founders Charlie Cleveland, Max McGuire.
The Verge
  • May 14 2026 – Subnautica 2 early-access launch sells 4 M copies, 467 k peak concurrent players.
Krafton Ends 3-Lawyer Dispute, Ted Gill Steps Down — Krafton Unknown Worlds Ceo Departure

Key Figures

Krafton CEO Changhan Kim; Unknown Worlds CEO Ted Gill (departing); co-founders Charlie Cleveland and Max McGuire; Vice-Chancellor Lori Will.

The Verge

Financial Stakes & Game Performance

The earnout totals $250 million. Subnautica 2’s early-access launch generated over 4 million sales and a peak of 467,000 concurrent Steam players, meeting the bonus threshold. All staff will share the payout in three yearly installments.

Krafton Ends 3-Lawyer Dispute, Ted Gill Steps Down — Krafton Unknown Worlds Ceo Departure

Official Statements & Responses

Krafton said the settlement restores focus on Subnautica 2’s full-release roadmap. Ted Gill told Bloomberg the agreement was mutual and that new leadership would benefit the studio. Krafton reiterated its commitment to the game’s global community.

Krafton Ends 3-Lawyer Dispute, Ted Gill Steps Down — Krafton Unknown Worlds Ceo Departure

Criticism & Opposition

Krafton claimed the executives sought a multimillion-dollar payout they had not earned and accused them of stealing files. The former leaders countered that Krafton’s delay and terminations were a scheme to dodge the earnout, describing the deal as bad and saying they were taken advantage of.

Krafton Ends 3-Lawyer Dispute, Ted Gill Steps Down — Krafton Unknown Worlds Ceo Departure

Conflicting Reports & Gaps

The settlement does not reveal the exact bonus distribution or name the new CEO. Court filings note ChatGPT’s suggestions guided Krafton’s strategy, but the extent of AI influence remains unspecified.

Krafton Ends 3-Lawyer Dispute, Ted Gill Steps Down — Krafton Unknown Worlds Ceo Departure

Why It Matters

The dispute highlights enforceable earnout clauses in acquisition deals and sets a precedent for parental liability when delaying releases. It also raises scrutiny of AI-driven counsel in corporate litigation.

Krafton Ends 3-Lawyer Dispute, Ted Gill Steps Down — Krafton Unknown Worlds Ceo Departure

What’s Next

Unknown Worlds will add a new vehicle and a Collector Leviathan region to Subnautica 2, seek an external CEO, and distribute bonus installments annually for three years.

Krafton and Subnautica 2 dev have reached a mutual settlement

Verbatim Quotes

  • “we mutually agreed to part ways” — Ted Gill, former CEO, Unknown Worlds Entertainment
Subnautica 2 studio Unknown Worlds' CEO resigns as Krafton agrees to pay $250m bonus
  • “New leadership is the best way for the studio to move forward.” — Ted Gill, former CEO, Unknown Worlds Entertainment
The Verge
  • “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, Inc. statement
IGN Entertainment
  • “The task force’s mandate was to either negotiate a ‘deal’ on the earnout or execute a ‘takeover’ of Unknown Worlds,” — Vice-Chancellor Lori Will, Delaware Court of Chancery
IGN Entertainment