Krafton settles Subnautica 2 bonus dispute
Analysis based on 7 articles · First reported Jul 01, 2026 · Last updated Jul 01, 2026
The settlement between Krafton and Unknown Worlds Entertainment is likely to have a positive impact on the video game industry's perception of fair acquisition practices, especially concerning earnout clauses. For Krafton, while the payout increases financial obligations, resolving the legal dispute removes uncertainty and potential further reputational damage, which could be seen positively by investors. The success of Subnautica: Below Zero and the subsequent bonus payments could also incentivize developers within the industry.
A year-long legal dispute between publisher Krafton and its subsidiary Unknown Worlds Entertainment, the developer of Subnautica: Below Zero, has concluded with a settlement. The conflict arose after Krafton fired Unknown Worlds Entertainment's co-founders, including CEO Ted Gill, ahead of a potential $250 million earnout bonus tied to Subnautica: Below Zero's performance. The executives sued, alleging Krafton tried to avoid paying the bonus, a claim supported by a judge's finding that Krafton CEO Changhan Kim consulted ChatGPT on how to dodge the payment. As part of the settlement, Krafton will pay significantly increased bonuses to all Unknown Worlds Entertainment staff, not just those present at the 2021 acquisition, in three annual installments. Ted Gill has agreed to step down as CEO, with a new leader to be appointed from outside both companies. Subnautica: Below Zero has been a massive commercial success, selling over four million copies in its early access launch week.
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