Ted Gill, co-founder and CEO of Unknown Worlds Entertainment, the studio behind Subnautica 2, has stepped down from his executive position. This move follows a settlement between Unknown Worlds and its parent company, Krafton, that resolves a year-long legal dispute over bonus payments.
Krafton had initially agreed to pay bonuses tied to the success of Subnautica 2, but a legal battle ensued when the company sought to avoid these payouts. A Delaware judge had previously ordered Krafton to reinstate Gill and extend the bonus period to align with Subnautica 2's delayed early access launch, now slated for 2026.
In an interview, Gill stated that he and Krafton "mutually agreed to part ways" following the settlement. He also indicated that Unknown Worlds employees would receive "compensated significantly more" than originally planned. The settlement includes bonus payouts in three annual installments for all current employees, not just those employed at the time of Krafton's 2021 acquisition of Unknown Worlds for $500 million.
The legal conflict arose in 2025 when Krafton fired Gill and other co-founders, subsequently delaying Subnautica 2. The studio executives alleged this was a maneuver to circumvent the bonus agreements, which stipulated a potential further $250 million payment if the game met certain financial targets. Notably, court documents revealed that Krafton CEO Changhan Kim had consulted ChatGPT for advice on managing the bonus payouts, a detail that drew significant attention.
Gill expressed optimism for Subnautica 2's future success as he departed the studio. The exact terms of the settlement, including the total bonus amounts and Krafton's financial obligations, have not been publicly disclosed.