Krafton settles with Subnautica 2 developer after drawn-out dispute over $250 million

The Verge News

Summary

Krafton has settled a legal dispute with Unknown Worlds Entertainment, agreeing to pay bonuses to all staff of the Subnautica 2 studio after a fight over a potential $250 million bonus, while CEO Ted Gill will resign.

<figure> <img alt="A screenshot from Subnautica 2." data-caption="" data-portal-copyright="Image: Unknown Worlds Entertainment" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/04/SN2_Coral_Gardens_with_Friends_4K.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">After a lengthy legal dispute, Krafton has settled with its subsidiary Unknown Worlds Entertainment, which is developing <em>Subnautica 2</em>, and will pay bonuses to the studio's staff, <a href="https://www.bloomberg.com/news/articles/2026-07-01/krafton-agrees-to-pay-subnautica-2-bonuses-as-developer-s-ceo-resigns?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4MjkxNTU0NywiZXhwIjoxNzgzNTIwMzQ3LCJhcnRpY2xlSWQiOiJUSEkyRklLR0lGUEUwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.WjwpXH3Q1yC4ZNFhKO0dYP4Ud-b1dypbv-REPIWQvaI&amp;leadSource=uverify%20wall"><em>Bloomberg</em> reports</a>.</p> <p class="wp-block-paragraph">The dispute began last year after Krafton pushed out Unknown Worlds' cofounders, Charlie Cleveland and Max McGuire, and its CEO, Ted Gill, ahead of a potential $250 million bonus for hitting certain financial goals that would have been shared with the studio. After the executives sued, a judge reinstated Gill as CEO in March, and <em>Subnautica 2</em> <a href="https://www.theverge.com/games/920668/subnautica-2-early-access-release-date-unknown-worlds-krafton">finally launched in early access in May</a>. The game passed <a href="https://www.gematsu.com/2026/05/subnautica-2-early-access-sales-top-four-million">four million copies sold in five days</a>.</p> <p class="wp-block-paragraph">Details …</p> <p><a href="https://www.theverge.com/games/960354/krafton-subnautica-2-settlement-bonuses-unknown-worlds">Read the full story at The Verge.</a></p>
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# Krafton settles with Subnautica 2 developer after drawn-out dispute over $250 million Source: [https://www.theverge.com/games/960354/krafton-subnautica-2-settlement-bonuses-unknown-worlds](https://www.theverge.com/games/960354/krafton-subnautica-2-settlement-bonuses-unknown-worlds) [![Jay Peters](https://platform.theverge.com/wp-content/uploads/sites/2/2025/01/JAY_BLURPLE.jpg?quality=90&strip=all&crop=0%2C0%2C100%2C100&w=96)](https://www.theverge.com/authors/jay-peters) Jay Peters is a senior reporter covering technology, gaming, and more\. He joined The Verge in 2019 after nearly two years at Techmeme\. After a lengthy legal dispute, Krafton has settled with its subsidiary Unknown Worlds Entertainment, which is developing*Subnautica 2*, and will pay bonuses to the studio’s staff,[*Bloomberg*reports](https://www.bloomberg.com/news/articles/2026-07-01/krafton-agrees-to-pay-subnautica-2-bonuses-as-developer-s-ceo-resigns?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4MjkxNTU0NywiZXhwIjoxNzgzNTIwMzQ3LCJhcnRpY2xlSWQiOiJUSEkyRklLR0lGUEUwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.WjwpXH3Q1yC4ZNFhKO0dYP4Ud-b1dypbv-REPIWQvaI&leadSource=uverify%20wall)\. The dispute began last year after Krafton pushed out Unknown Worlds’ cofounders, Charlie Cleveland and Max McGuire, and its CEO, Ted Gill, ahead of a potential $250 million bonus for hitting certain financial goals that would have been shared with the studio\. After the executives sued, a judge reinstated Gill as CEO in March, and*Subnautica 2*[finally launched in early access in May](https://www.theverge.com/games/920668/subnautica-2-early-access-release-date-unknown-worlds-krafton)\. The game passed[four million copies sold in five days](https://www.gematsu.com/2026/05/subnautica-2-early-access-sales-top-four-million)\. Details of the settlement haven’t been disclosed\. “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,” Krafton said in[a statement to*Game Developer*](https://www.gamedeveloper.com/business/krafton-agrees-to-pay-bonuses-to-subnautica-2-studio-as-ceo-resigns?utm_source=dlvr.it&utm_medium=bluesky)\. Bonuses will be paid to all Unknown Worlds staffers instead of only those who were there when[Krafton acquired the studio in 2021](https://www.krafton.com/en/news/press/krafton-inc-to-acquire-unknown-worlds-the-developers-behind-subnautica-and-natural-selection/), and they’ll be paid out in three yearly installments, according to*Bloomberg*\. However, Gill will be leaving the studio\. “We mutually agreed to part ways,” Gill tells*Bloomberg*\. “New leadership is the best way for the studio to move forward\.” Krafton didn’t immediately reply to a request for comment from*The Verge*\. **Follow topics and authors**from this story to see more like this in your personalized homepage feed and to receive email updates\. - Jay Peters

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