Judge Commands Krafton to Reinstate Subnautica 2 Team, Restoring $250M Bonus Package
A recent ruling by a judge has mandated that Krafton, the South Korean video game conglomerate, must restore Ted Gill as the CEO of Unknown Worlds. Gill was dismissed from his position in July 2025. Under this ruling, he will resume full operational authority over the studio and the Early Access launch of Subnautica 2.
Krafton’s Legal Challenges
The judge’s decision also favored Unknown Worlds as it begins the first phase of legal challenges against Krafton. The court found that Krafton violated the Employment Protection Act (EPA) by terminating key employees without valid reasons. Additionally, it was determined that Krafton improperly seized operational control of Unknown Worlds.
Implications of the Ruling
The judge deemed the board resolution that resulted in Gill and his co-developers’ termination as “ineffective.” Consequently, Gill will regain management capabilities on the Steam platform for Subnautica 2. Furthermore, the $250 million bonus package established during the acquisition of Unknown Worlds by Krafton will be reinstated.
- The bonus payout period for the co-founders has been extended through 2026 and possibly beyond.
- This extension allows the co-founders to earn the bonus they were previously denied.
Response from the Developers
Krafton’s original complaint stated that the terminated developers had “abandoned their responsibilities.” However, those affected clarified that they felt they were “pushed out” to avoid fulfilling the $250 million bonus obligations. The positions of the three removed developers were filled by Steve Papoutsis, who also served as CEO of Striking Distance.
This is an evolving story, and further updates are expected as the situation develops.
