Krafton and Unknown Worlds Reach New Deal After Big Dispute

< Subnautica 2 Settlement: Krafton and Unknown Worlds End Legal Battle with $250M Bonus Payout >

A Three-Year Legal Saga Concludes with a Landmark Agreement

In a dramatic resolution to a high-stakes dispute, Krafton—the parent company behind Battlegrounds—has reached a final settlement with Unknown Worlds Entertainment, the studio behind the critically acclaimed Subnautica and its sequel.

The agreement ends a bitter legal battle that began when Krafton ousted key leadership, including co-founders Charlie Cleveland and Max McGuire, along with former CEO Ted Gill, in 2022. The firing sparked outrage, particularly after Krafton reneged on a promised $250 million bonus tied to sales milestones, allegedly sidelining the studio’s former leaders from the deal.

A Court Reversal and a Swift Comeback

The conflict escalated into litigation, but a judicial intervention in March restored Ted Gill as CEO, reinstating stability just months before Subnautica 2 launched into early access. The game’s explosive debut proved the studio’s resilience—selling over 4 million copies in its first five days—cementing its place as a standout title in gaming.

Now, Krafton has committed to a three-year bonus payout for all Unknown Worlds employees, not just those employed at the time of the 2021 acquisition. The structured payments provide financial security for the team, reflecting a rare acknowledgment of past grievances.

Legal Truce Ends Years of Hostility

With the settlement finalized:

• All pending lawsuits—including those involving Krafton, Unknown Worlds, and former leadership—have been dropped.
• Ted Gill has stepped down, citing a desire for "new leadership to help the studio grow."
• Krafton has declined to comment on the resolution, according to The Verge.

For the submersive saga that captivated millions, the conclusion marks a rare harmony—one where financial restitution and creative success take center stage over corporate strife.