The long-running drama between Krafton and Unknown Worlds Entertainment has finally come to an end. After months of back-and-forth disputes over the development and ownership of Subnautica 2, both parties have reached a settlement that will allow the game’s developers to continue working on their magnum opus without any legal entanglements.
At the heart of the dispute was Krafton’s decision to oust Unknown Worlds’ CEO Ted Gill from the company in July 2025. The executives had claimed that Krafton intentionally delayed Subnautica 2 and other projects to avoid a $250 million payout, while Krafton countered that the leadership had abandoned the game and stolen sensitive materials and documents.
The dispute eventually led to a lawsuit, which Krafton lost in March when it was ordered to reinstate Gill as CEO. However, it wasn’t until after Subnautica 2’s impressive four-million-copy sales milestone that both parties reached a settlement.
Under the terms of the agreement, Krafton has agreed to dismiss all pending legal proceedings with Unknown Worlds and will provide support for the continued development of Subnautica 2. The studio will also receive bonuses for the entire staff, including those who joined more recently, in addition to the original executives. These bonuses will be paid out over three annual installments.
Gill has also announced that he will step down as CEO and leave the company, citing “new leadership” as the best way forward for the studio. The search is now on for a new CEO from outside of both Krafton and Unknown Worlds.
The settlement is a huge win for the developers at Unknown Worlds, who can finally focus on what matters most: creating an amazing gaming experience for their fans. As Gill himself put it, “We’re all super excited about Subnautica 2 and its tremendous success.” And with this dispute now behind them, there’s no doubt that the team will continue to produce some of the best VR experiences out there.
This settlement is a significant milestone not just for Unknown Worlds and Krafton, but also for the VR industry as a whole. It shows that even in the most contentious of disputes, parties can come together and find a mutually beneficial solution. And with Subnautica 2 continuing to sell millions of copies worldwide, it’s clear that this settlement will pave the way for even more exciting developments in the world of VR gaming.
As we look to the future, one thing is certain: the VR industry is all about collaboration, innovation, and a shared passion for creating immersive experiences. And with this settlement behind us, there’s no limit to what can be achieved when developers, publishers, and investors work together towards a common goal.
Source: Game Developer XR — 2026-07-01