Delaware Court Reinstates Gill as Subnautica 2 CEO Amid Release Row

A Delaware court ruling has reinstated Ted Gill as CEO of Unknown Worlds Entertainment, restoring his control over the development and early access launch of Subnautica 2, but fresh legal tensions have erupted after the game's publisher, Krafton, announced a May release date without his involvement.

The dispute stems from a March 16, 2026, decision by Vice Chancellor Lori Will of the Delaware Court of Chancery, which found that Krafton breached its 2021 acquisition agreement with the studio. Krafton had purchased Unknown Worlds, known for the hit underwater survival game Subnautica, for $500 million. The deal included a $250 million earnout bonus payable to studio leaders if Subnautica 2 met specific sales targets post-release. The agreement guaranteed the studio's operational independence, allowing Gill, cofounder Charlie Cleveland, and special projects director Max McGuire to retain control unless removed for cause.

In mid-2025, as internal projections indicated the sequel was on track to trigger the bonus, Krafton removed the three executives without justification and appointed Steve Papoutsis, head of another Krafton studio, to lead Unknown Worlds. The move delayed...