The protracted legal dispute between Korean publisher Krafton Inc. and Unknown Worlds Entertainment, the studio behind the Subnautica series, has reached a resolution. The settlement includes financial bonuses for the entire Subnautica 2 development team, to be paid out over three years, and the resignation of Unknown Worlds CEO Ted Gill.
The conflict stemmed from Unknown Worlds' July 2025 lawsuit against Krafton, seeking $250 million in bonuses. This legal action led to the delay of Subnautica 2 and the initial firing of CEO Ted Gill. However, a March 2026 court ruling ordered Gill's reinstatement, with a judge attributing the publisher's reluctance to pay the owed bonuses partly to its CEO consulting ChatGPT on how to circumvent the agreement.
Under the terms of the new legal settlement, both Krafton and Unknown Worlds have agreed to part ways with Gill, who stated that new leadership is essential for the studio's future. He expressed that the decision to move on was mutual and that outside leadership would best serve the company. Gill also confirmed that all employees at Unknown Worlds, regardless of their tenure or when they joined after Krafton's 2021 acquisition, will receive substantial compensation exceeding what was originally agreed upon in the purchase. While specific figures remain undisclosed, Gill indicated that further incentives are planned, tied to the ongoing updates for Subnautica 2.
Subnautica 2, which released on PC and Xbox Series X|S on May 14, has achieved significant commercial success. The game reportedly reached an impressive player count within its first day and sold 4 million copies in just four days. Despite his departure, Gill conveyed pride in the game's performance, calling the team "super excited" about its success.