Krafton reached an agreement with the developer’s top officials.
The complicated legal battle between Krafton and the management of Subnautic 2 Developer Unknown Worlds Entertainment is finished. The two parties reached an agreement where Krafton will pay bonuses to all studio staff and Ted Gill will once again step down as CEO of Unknown Worlds.
“We mutually agreed to part ways,” Gill said. Bloomberg. “New management is the best way for the studio to move forward.” Whoever takes over as CEO will be an external hire, according to Gill.
Krafton ousted Gill and Unknown Worlds co-founders Charlie Cleveland and Max McGuire last summer. In a lawsuit, the trio accused the company of firing them and delaying Subnautic 2 until 2026 to avoid having to pay $250 million in bonuses if he reached certain revenue thresholds last year.
A judge ordered Krafton to rehire Gill as CEO in March and Subnautic 2 was released in early access in May. The co-op survival game sold well enough – over 4 million copies so far – to trigger the bonus stipulated in the acquisition deal when Krafton bought the developer in 2021.
In fact, according to Gill, the development team will be “paid significantly more” than the original agreement stipulated and will receive “additional incentives” thanks to the future success of Subnautic 2. Bloomberg notes that all Unknown Worlds staff (not just those who were employed at the time of acquisition) will receive bonuses, which will be paid in three annual installments.
“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 told Woozad in a statement. “Unknown Worlds and Krafton focus on supporting Subnautic 2its early access to the full version 1.0 and the global community that made the franchise so special. Unknown Worlds will continue to lead development, with Krafton providing support for the game’s success.”
