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CEO Reinstated: Subnautica 2 Studio Fights Publisher
23 Apr
Summary
- Unknown Worlds CEO Ted Gill was reinstated by a Delaware court.
- Krafton allegedly delayed Subnautica 2 to avoid a $250 million payout.
- The legal battle is split into two parts, with more rulings pending.
In March, Unknown Worlds' former CEO Ted Gill was reinstated by the Delaware State Court of Chancery, concluding a legal fight initiated in July 2025. Gill, along with two other executives, alleged that Krafton, the studio's owner, intentionally delayed Subnautica 2 to circumvent a $250 million payout. Krafton denied these allegations, sparking a significant legal dispute where they filed a countersuit. The core of the conflict centered on Subnautica 2's early access release date and the associated earnout payments.
Vice chancellor Lori Will ruled that Krafton illegally terminated Gill to seize control of the studio, ordering his reinstatement. While Gill returned to his role, co-founders Max McGuire and Charlie Cleveland took on limited positions. The court also adjusted the payout period to account for Gill's absence. Legal experts consider this a major victory for Unknown Worlds, effectively reversing Krafton's alleged illegal takeover.
The legal proceedings continue, divided into two parts by the Delaware court. The first addresses Krafton's alleged interference with Subnautica 2's release and studio control. The second will focus on whether Krafton's actions wrongfully impacted the earnout. If Krafton is found liable for the latter, the executives could receive damages in addition to the potential $250 million payout.
Krafton's CEO Kim Chang-han faces scrutiny for allegedly seeking ChatGPT's advice on avoiding the earnout after being warned against it. Furthermore, Krafton's handling of Subnautica 2's announcement post-ruling has drawn criticism. The executives' lawyers contend that Krafton leaked an announcement for the game's May early access release, undermining the studio's planned process and causing confusion. Krafton, however, maintains its statements were merely opinions and not binding. The Steam page for Subnautica 2 has since removed Krafton as publisher, though it remains listed under 'Franchise,' indicating potential shifts in their relationship.
