adminA Delaware court has ordered Krafton to reinstate former Unknown Worlds CEO Ted Gill and return his authority over the early access launch of Subnautica 2. The ruling also extends the period in which the studio’s former leadership can meet the conditions for a disputed $250 million earnout. However, the decision does not settle every claim related to the payment.
Image credit: Unknown Worlds/Krafton
What the Subnautica 2 ruling requires Krafton to do
Vice Chancellor Will of the Delaware Court of Chancery ruled in favor of Fortis Advisors LLC, which represents former shareholders of Unknown Worlds Entertainment. The court found that Krafton breached the parties’ agreement by dismissing key employees without valid cause and taking operational control of the studio improperly.
The order provides for Gill’s reinstatement as CEO and restores his operational authority for a period extended by the time between his termination and his return. It also says the July 1, 2025 board resolution cannot limit that authority. Krafton must restore Gill’s access to the Steam platform and return his control over the game’s early access launch.
For players, the ruling concerns who has authority over the launch process; it does not announce a release date. Krafton said it was preparing an updated version of the game and would release it when possible.
Why the $250 million earnout is disputed
The legal dispute centers on a $250 million bonus tied to revenue targets for a planned 2025 early access release of Subnautica 2. Fortis and the former leadership team alleged that Krafton delayed the game to avoid the potential payment. Krafton disputed that account and argued that the former executives had threatened to publish the game without its support, marketing, promotion or distribution.
Krafton also alleged that Max McGuire, Ted Gill and Charlie Cleveland downloaded large numbers of company files and emails before their employment ended. The founders denied wrongdoing and argued that Krafton changed its explanation for dismissing them during the litigation.
The judge rejected the file-download allegation as an independent basis for termination. According to the ruling, Krafton found out about the downloads after the July 1 dismissals and did not establish that they independently justified firing the former executives.
Deadline extended, but payment is not guaranteed
The ruling extends the period for meeting the earnout conditions to September 15, 2026. This gives the former team additional time under the agreement, but it does not itself guarantee that the $250 million will be paid. Krafton noted that claims for damages and an earnout remain unresolved, so further litigation is still pending.
When assessing the outcome, it is useful to separate the court’s immediate orders—Gill’s reinstatement and restored operational authority—from the outstanding financial claims. The latter depend on issues that have not yet been finally resolved.
Krafton responds to the court decision
Krafton said it disagreed with the ruling and was reviewing its options. The company also said its focus remained on improving the game and preparing it for early access, with the aim of delivering a strong experience for the Subnautica community.
The court’s decision changes who is entitled to direct key parts of the launch, while leaving the wider dispute between Krafton and the former Unknown Worlds leadership ongoing. For players, the practical takeaway is that the ruling does not confirm when Subnautica 2 will launch or resolve the game’s remaining development plans.
