Subnautica 2 CEO is Leaving Again After Krafton Pays Up

The legal dispute between Krafton Inc, and Unknown Worlds' chief executive officers and co-founders has finally come to an end, as the two have been locked in a legal battle for the last year over a 250 million dollar incentive bonus.

The legal dispute began last summer, after Krafton fired Unknown Worlds CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire, and delayed the release of Subnautica 2. The three executives responded with a lawsuit claiming Krafton's actions were an attempt to avoid paying the bonus, which will now be paid to everyone at the studio, including recently hired employees.

Subnautica 2 Devs Receive Bonuses After Lengthy Legal Battle

Ted Gill was ordered to be reinstated as CEO in March thanks to a judge's ruling, but Krafton reportedly had already started spreading the word about Subnautica 2's early access release before Gill had a proper chance to jump back in and review the state of the game.

Despite some turmoil over the massive bonus, Unknown Worlds pressed on, and Subnautica 2 released to glowing reviews, sold over four million copies, and is now putting the legal battle behind them.

As reported by Bloomberg, Krafton has agreed to pay bonuses to the entire staff of Unknown Worlds Entertainment as part of the settlement, and the studio has reportedly withdrawn all pending lawsuits.

Krafton acquired Unknown in 2021 for $500 million in addition to the $250 million incentive bonus, which was originally only going to compensate the top three executives and the staff who were working at the studio at the time of the acquisition, but following the recent settlement, everyone at the studio will now receive a piece of the pie, even recent hires.

Following the settlement, Ted Gill has reportedly stepped down from his post as CEO of Unknown Worlds, and the studio is currently searching for a new leader.

In a statement provided to IGN, Krafton confirmed all pending legal proceedings have been dismissed, stating, "Unknown Worlds and Krafton are focused on supporting Subnautica 2, its Early Access journey to the full 1.0 release and the global community that has made the franchise so special. Unknown Worlds will continue leading development, with Krafton providing support for the success of the game."

While the circumstances leading up to the game's early-access launch were less than ideal, as the captain was thrown overboard and the developers were left thinking they may not receive the bonus they were promised, it appears things may have worked out for the best for Unknown Worlds, as the studio will now reportedly receive significantly more compensation than was originally promised.

Unknown Worlds Leave Legal Mess Behind

According to Bloomberg's report, the bonus will be paid in three annual installments, and the developers will receive additional incentives for future updates.

The legal battle revealed some troubling details, as it was reported that Krafton’s chief executive, Changhan Kim, had consulted ChatGPT about how to potentially avoid paying the $250 million incentive bonus.

Vice-Chancellor Lori Will of the Court of Chancery in Delaware revealed that Kim even formed an internal task force named Project X that was meant to either negotiate a deal on the bonus, or organize a takeover of Unknown Worlds. "Over the next month, Krafton followed most of ChatGPT’s recommendations."

Unknown Worlds can now breathe a sigh of relief and put this legal mess behind them, and continue development on the underwater base-building and exploration game, Subnautica 2, which has gamers across the world falling in love with it.

Subnautica 2 is still in early access and is available for Xbox Series X|S and PC.