Krafton has reached a settlement with Unknown Worlds Entertainment leadership, ending a contentious legal dispute. As part of the agreement, Ted Gill is leaving his role as CEO for a second time, with the company planning to bring in external leadership. Gill stated that both parties mutually agreed this move would allow the studio to move forward effectively.

The conflict began last summer when Krafton ousted Gill and co-founders Charlie Cleveland and Max McGuire. The trio filed a lawsuit claiming wrongful termination and alleged that Krafton delayed Subnautica 2 to 2026 to avoid paying $250 million in performance bonuses. A judge ordered Gill's reinstatement in March, and the game entered early access in May.

Subnautica 2 has sold over 4 million copies, exceeding revenue thresholds that triggered the bonus payouts from Krafton's 2021 acquisition deal. Gill confirmed staff will receive even more compensation than originally stipulated, plus additional incentives tied to the game's continued success. All Unknown Worlds employees, regardless of tenure, will receive bonuses paid in three annual installments.

The settlement dismisses all pending legal proceedings, allowing both companies to refocus on Subnautica 2's development path to full release. Unknown Worlds maintains creative control while Krafton provides support, ensuring the survival sequel can continue serving its dedicated player base.