South Korean game publisher Krafton has settled a legal dispute with its subsidiary Unknown Worlds Entertainment, the developer of the early-access hit Subnautica 2, according to a Bloomberg report. The settlement includes the payment of bonuses to all studio staff members, resolving a conflict that began in 2025 after Krafton dismissed the studio's co-founders and CEO.
Dispute Originated Over $250 Million Bonus
The dispute erupted last year when Krafton ousted Unknown Worlds' co-founders Charlie Cleveland and Max McGuire, along with CEO Ted Gill, just before the studio was poised to earn a potential $250 million bonus tied to meeting specific financial targets. The bonus would have been shared among the studio's employees. After the executives filed a lawsuit, a judge reinstated Gill as CEO in March 2026. Subnautica 2 launched in early access in May 2026 and sold over four million copies within five days.
Settlement Details
While the exact terms of the settlement remain undisclosed, Krafton issued 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.” According to Bloomberg, bonuses will be paid to all Unknown Worlds staff members—not just those employed at the time of Krafton's 2021 acquisition—and will be distributed in three annual installments.
CEO Ted Gill Departs
As part of the settlement, Ted Gill will leave the studio. “We mutually agreed to part ways,” Gill told Bloomberg. “New leadership is the best way for the studio to move forward.” Krafton did not immediately respond to a request for comment from The Verge.
