Key Takeaways
Created with AI - we're still experimenting, so apologies if it misses the mark
- Subnautica 2 distribution rights have been transferred back to Unknown Worlds Entertainment, with the studio now listed as both author and distributor on Steam.
- A court ruling in March 2026 ordered Kraftons CEO to reinstate Unknown Worlds founders Ted Gill, Charlie Cleveland, and Max McGuire in their respective roles following disagreements between the parties.
- The court extended the payment deadline for a performance-based bonus of $250 million from December 31, 2025, to September 15, 2026, with an option to extend it further to March 15, 2027.
- A legal battle ensued due to disputes over Kraftons attempts to delay the release of Subnautica 2 and allegations that they sought strategies from ChatGPT to avoid paying the performance bonus.
Recommended products
This page contains affiliate links. As an Amazon Associate, we earn a commission from purchases made through these links.
Steam has removed Krafton as the distributor of Subnautica 2. Unknown Worlds Entertainment is now listed as both the author and distributor, according to SteamDB. This change occurred within the last week on Steam and a week prior on the Epic Games Store and Xbox store pages, but no official announcement has been made. Krafton’s acquisition of Unknown Worlds Entertainment in October 2021 included an Equity Purchase Agreement that stipulated an initial undisclosed amount plus a performance-based bonus of $250 million payable to the studio’s former shareholders. This bonus was contingent upon meeting specific financial and development milestones within a set timeframe. Such agreements often grant studio management autonomy over product development, roadmaps, budgets, and hiring decisions, with strict conditions for dismissing employees for cause, and the earnout based on objectives like revenues or margin. However, disagreements arose, leading to a legal battle. In March, a Delaware court ordered the reinstatement of Unknown Worlds founder Ted Gill as CEO, along with co-founders Charlie Cleveland as creative director and Max McGuire as technical director. This ruling did not resolve the underlying disputes, and the interim CEO announced Subnautica 2’s May release without the approval of Gill, Cleveland, and McGuire.
Subnautica 2 Distribution Transferred to Unknown Worlds Entertainment Following Court Ruling Against Krafton
The three founders claimed that Krafton attempted to delay the game’s release to avoid paying the performance bonus, claiming they regretted the values agreed upon in the original contract. Krafton stated that the delay was not influenced by contractual or financial considerations, without specifying an alternative reason. The founders asserted that Subnautica 2 was ready for early access and that Krafton deliberately removed them when they refused to approve the delay. In March 2026, the court ruled in favor of the Unknown Worlds founders. The decision revealed that Krafton’s CEO had sought ideas from ChatGPT for strategies to avoid paying the bonuses. As corrective measures, the court ordered Gill’s reinstatement as CEO and extended the payment deadline for the earnout by 258 days, shifting the final due date from December 31, 2025, to September 15, 2026, with an option to extend it further to March 15, 2027. All access, including publishing on Steam, has been restored for Unknown Worlds. The case now proceeds to the second phase to determine the financial damages resulting from Krafton’s conduct.
In Case You Missed It
In other gaming news, Bruno Pferd has been keeping a close eye on the latest developments in the ongoing legal saga between the founders of Unknown Worlds and publisher Krafton. In his recent post, “Krafton Forced to Rehire Fired CEO Following ChatGPT Advice” (March 17, 2026), Bruno dives into an intriguing court ruling that’s forced Krafton to reinstate its dismissed CEO, potentially delaying the release of Subnautica 2. If you’re interested in the intersection of AI, corporate intrigue, and game development, this is a fascinating read for you Krafton Forced to Rehire Fired CEO Following ChatGPT Advice. Meanwhile, in other exciting news from the world of Subnautica, Unknown Worlds has been sharing development updates on their upcoming sequel. In their latest vlog released just this March 15th by Sophie Laurent, the team gave us a sneak peek into the enhanced base-building system they’re cooking up for Subnautica 2. If you’re eager to see how real-time modular construction will transform your underwater habitats into strategic exploration hubs and lasting homes, don’t miss out on this insightful video featuring lead designer Kiel McDonald and Carolyn Lu Unknown Worlds Unveils Enhanced Base-Building System for Subnautica 2 in Latest Dev Vlog. And in other Subnautica news, Bruno’s latest post, “Subnautica 2: Reinstated CEO Makes New Accusation Against Krafton, Announces Game Release” (published March 20th), explores the latest developments surrounding Subnautica 2’s release window announcement, which has reignited tensions between the parties involved. Dive in to find out more about this heated battle and its potential impact on the much-anticipated sequel’s future Subnautica 2: Reinstated CEO Makes New Accusation Against Krafton, Announces Game Release.