Publisher Krafton fired CEO Ted Gill, creative director Charlie Cleveland, and technical director Max McGuire last year, accusing them of an “absence of core leadership” and expressing a “profound sense of betrayal” over what it described as a failure to meet the trust of fans.
The founders, however, argued that it was Krafton who breached their agreement. They claim they were dismissed just before the delay of Subnautica 2 in a move allegedly intended to prevent the game’s Early Access launch and avoid reaching the sales targets required to trigger a $250 million bonus for the development team.
The trio took legal action seeking reinstatement, and the court has now ruled in their favor. Ted Gill has been officially reinstated as CEO of Unknown Worlds. The judge found that Krafton breached the agreement by terminating key employees without valid cause and unlawfully taking operational control of the studio.
As a result, the board decision made on July 1 — which included the dismissal of the founders, takeover of the studio, and delay of Subnautica 2 — has been declared ineffective insofar as it interfered with Gill’s operational authority.
The court also ordered Krafton to immediately restore Gill’s access to the Steam platform and prohibited the company from interfering with his authority over the game’s Early Access release.
Regarding the $250 million bonus, the eligibility period has been extended to September 15, with the possibility of a further extension until March 15, 2027.
Subnautica 2 was previously delayed to 2026, with no confirmed release date. The court rejected Krafton’s claims that the founders had failed to deliver the game on time or were improperly working on other projects.
According to the ruling, Krafton’s CEO feared that launching Subnautica 2 in Early Access would trigger the bonus payout and decided to terminate the founders on those grounds — a move now deemed a breach of contract. Court documents also revealed that CEO Changhan Kim consulted ChatGPT multiple times on how to communicate the leadership changes to fans.
It remains unclear whether any financial damages will be awarded or how the ruling will ultimately affect the game’s release timeline.
In response, Krafton stated that it disagrees with the court’s decision but remains committed to releasing Subnautica 2 “as soon as possible,” emphasizing that its top priority continues to be delivering the best possible experience for players.
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