Krafton settles Subnautica 2 bonus dispute with Unknown Worlds
The settlement ends pending litigation tied to a potential $250 million payout, with bonuses due for all Unknown Worlds employees.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
Krafton has settled a legal fight with Unknown Worlds Entertainment and will pay bonuses to staff at the studio behind Subnautica 2, Bloomberg reported. The deal ends pending litigation over a disputed payout that could have been worth $250 million if the studio met certain financial targets.
The dispute centered on leadership changes at Unknown Worlds, a Krafton subsidiary, before the bonus could be paid. Bloomberg reported that Krafton removed Unknown Worlds co-founders Charlie Cleveland and Max McGuire, along with CEO Ted Gill, last year before the potential payout, which would have been shared with the studio.
Gill, Cleveland and McGuire later sued. A judge restored Gill to the CEO role in March, according to The Verge, before Subnautica 2 launched in early access in May.
Krafton confirmed the settlement in a statement to Game Developer. “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,” the company said.
Bonuses will cover the whole studio
Bloomberg reported that the bonus payments will go to all current Unknown Worlds employees, rather than only workers who were at the studio when Krafton bought it in 2021. The payments will be made across three annual installments, according to Bloomberg.
Krafton announced its acquisition of Unknown Worlds in 2021. The studio is known for Subnautica and Natural Selection, according to Krafton’s announcement at the time.
The settlement terms were not disclosed, Bloomberg reported. Krafton did not immediately respond to a request for comment from The Verge.
CEO Ted Gill is leaving
Gill will leave Unknown Worlds as part of the outcome, Bloomberg reported. “We mutually agreed to part ways,” Gill told Bloomberg. “New leadership is the best way for the studio to move forward.”
The leadership change follows a turbulent stretch for the studio as it prepared Subnautica 2 for release. The game reached early access in May after the court fight over executive roles and the disputed bonus.
Subnautica 2 sold more than 4 million copies in its first five days in early access, Gematsu reported. That launch performance put the unresolved bonus dispute in sharper focus because the disagreement had been tied to financial milestones, according to Bloomberg.
The settlement closes the legal proceedings between Krafton, Unknown Worlds and the three executives. The studio now continues work on Subnautica 2 under new leadership, while employees are set to receive bonus payments over the next three years, according to Bloomberg.
This story draws on original reporting from The Verge.