Krafton has settled a prolonged dispute with Unknown Worlds Entertainment, the studio developing Subnautica 2, according to Bloomberg. The South Korean gaming giant will pay bonuses to Unknown Worlds staff as part of the agreement.
The conflict started last year after Krafton removed Unknown Worlds cofounders Charlie Cleveland and Max McGuire, along with CEO Ted Gill, before a potential fundraising round. Krafton acquired Unknown Worlds in 2021 and held majority control of the studio. The leadership removals triggered friction between the parent company and the subsidiary over governance and compensation.
Unknown Worlds operates as a Krafton subsidiary but has maintained relative independence in developing the underwater survival sequel to the original Subnautica, released in 2018. The game became a cult classic and commercial success, making the franchise valuable to Krafton's portfolio.
The settlement avoids prolonged litigation that could have damaged both parties. Krafton gains stability at a key studio during Subnautica 2's development, while Unknown Worlds secures financial commitments to its team. The bonus structure suggests the deal includes recognition of employee contributions during the disputed period.
Details on the settlement's financial terms remain limited beyond the bonus commitment. Bloomberg did not specify the total value or exact bonus structure. Krafton has not publicly commented beyond confirming the resolution.
This dispute reflects tensions that can emerge when large publishers acquire independent developers. Krafton's history includes acquisitions of studios like Dreammatrix and Striking Distance Studios, giving it a growing portfolio of gaming intellectual property. Unknown Worlds' flagship franchise makes it a core asset, explaining why both sides opted for settlement rather than extended legal conflict.
The resolution allows both parties to refocus on Subnautica 2's development and release. Unknown Worlds remains well-positioned to continue the franchise, with the studio's expertise in