Krafton settles dispute pays bonuses to all staff CEO quits

A long-running legal dispute between video game publisher Krafton and the leadership of its subsidiary, Unknown Worlds Entertainment, has been settled, with the developer's entire staff set to receive significant bonuses following the successful launch of Subnautica 2. The settlement, announced on July 1, 2026, also sees the departure of Unknown Worlds CEO Ted Gill.

The legal conflict began in July 2025 when Gill and co-founders Charlie Cleveland and Max McGuire alleged Krafton intentionally delayed Subnautica 2 to avoid paying a $250 million earnout bonus tied to the studio's 2021 acquisition. Krafton disputed the claims, filing a countersuit that accused the executives of abandoning the game and taking materials. In March 2026, a court ruled in favor of the executives, reinstating Gill as CEO and upholding Krafton's obligation to pay the bonuses.

With Subnautica 2 selling over four million copies shortly after its early access launch in May 2026, the parties have now reached a mutual settlement dismissing all pending proceedings. Under the new agreement, the entire development team will be compensated, a significant expansion from the original terms which only covered the...