The legal conflict surrounding the development of Subnautica 2 has concluded with a settlement between publisher Krafton and the founders of Unknown Worlds, the studio behind the game. As part of the resolution, Ted Gill, who was reinstated as Unknown Worlds CEO by judicial order in March, has voluntarily stepped down.

The settlement, reported by Bloomberg and detailed by Game Developer, sees both parties dismiss their legal claims. Krafton has also agreed to provide financial bonuses to the developers at Unknown Worlds.

According to Gill, Subnautica 2's development team will receive more substantial compensation than initially planned when Krafton acquired the studio in 2021. Bonuses, originally intended for founders and staff at the time of the acquisition, will now extend to more recent employees, with "further incentives" planned as early access updates for Subnautica 2 continue. Gill stated that new leadership from outside both Krafton and Unknown Worlds will be sought to replace him, believing this is the best path forward for the studio.

Krafton confirmed in a statement to Game Developer that Unknown Worlds will continue to lead development on Subnautica 2, with the publisher offering support for the game's success. The resolution brings an end to a contentious period following the dismissal of three key Unknown Worlds leaders by Krafton last year.