The year-long legal battle between Krafton and Unknown Worlds Entertainment has finally reached a resolution, settling a complicated dispute over bonuses and leadership decisions that shook the gaming industry.
In a move that brings some closure—and a hefty payout—Krafton has agreed to pay bonuses to the staff of the studio that developed Subnautica 2. This settlement was reached following a legal spat that involved leadership changes, including the departure and subsequent reinstatement of former CEO Ted Gill.
The agreement ensures that Unknown Worlds employees will receive significantly more compensation than originally outlined in the studio’s initial bonus terms. Furthermore, the payouts will be distributed over three annual installments to all employees, ensuring a broader distribution of the funds.
This drama arose from Krafton’s acquisition of Unknown Worlds back in 2021 for $500 million, which included an earnout clause tied to the studio’s success with Subnautica 2. The conflict intensified when Krafton leadership fired several executives and co-founders, including Charlie Cleveland and Gill, and delayed the game’s early access launch into 2026.
The ousted executives challenged these actions in court, alleging that the firings and delay were a calculated tactic designed to evade fulfilling the agreed-upon bonus payouts. The legal process was complex, ultimately leading to a judge ordering Krafton to reinstate Gill and extend the bonus earnout period to accommodate the delayed launch.
Adding an unexpected layer of complexity to the saga were revelations about internal decision-making. It emerged that during the planning phase for Subnautica 2, Krafton CEO Changhan Kim reportedly sought advice from ChatGPT when formulating strategies that affected the studio’s terms.
Legal experts view this course of action as a poor strategic move for Krafton, especially given the potential financial implications. The outcome of the settlement and the underlying corporate actions are poised to affect nearly one-third of Krafton’s 2025 annual profit.
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Credit: PC Gamer
