It's Officially the End of an Era for Subnautica 2

The long-running dispute between Subnautica 2 developer Unknown Worlds Entertainment and publisher Krafton appears to have finally come to an end, closing the book on one of the most turbulent chapters in the companies’ history. Following months of legal battles over a $250 million incentive bonus tied to Subnautica 2, the two sides have reached a settlement that will see every employee at the studio receive a bonus payout, while CEO Ted Gill has agreed to step down, marking the end of an era for Unknown Worlds’ current leadership.

After acquiring Unknown Worlds in 2021 with a potential $250 million earnout, Krafton dismissed Gill and studio co-founders Charlie Cleveland and Max McGuire in 2025, alleging they had neglected their duties. The trio responded with a lawsuit claiming Krafton delayed Subnautica 2 and removed them from leadership to avoid paying the bonus, leading to a judge reinstating Gill as CEO earlier this year while litigation continued.

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Every Dev at Subnautica 2 is Getting a Bonus Now

According to Bloomberg, Krafton has now reached a settlement with Gill and the studio’s co-founders, ending the legal dispute and significantly expanding the incentive program. Rather than limiting payouts to employees who qualified under the original acquisition agreement, every member of Unknown Worlds will now receive a bonus, including developers hired after the 2021 acquisition.

Scratch & Peek

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Gill told Bloomberg that staff will be compensated “significantly more” than originally planned, with payments arriving in three annual installments alongside additional incentives as Subnautica 2 continues to receive updates. As part of the agreement, Gill confirmed he is stepping down as CEO, saying both sides mutually agreed that new leadership is the best path forward for the studio.

Unknown Worlds Entertainment will now begin searching for a new chief executive from outside both the studio and Krafton. Gill’s return to UWE was ordered by a Judge back in March, who would then oversee the proper early access release of Subnautica 2. Many may be surprised by this departure, but it seems to be to the benefit of Gill, UWE, and Subnautica 2.

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For Subnautica 2, the agreement removes a cloud that had hung over the game’s early access launch despite Subnautica 2‘s commercial success. More broadly, it represents the close of a defining chapter for both Krafton and Unknown Worlds Entertainment, ending an era of leadership issues, legal uncertainty, and acquisition-related tensions. As a new CEO search begins and the studio moves forward under a different structure, both companies are entering a new era with the hope that the conversation can return to making games.