Dispute over "Subnautica 2": Court allows dismissed CEO to be reinstated

It's another twist in the chaotic dispute over the survival game "Subnautica 2": A court is now allowing the dismissed CEO to be reinstated.

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Screenshot from Subnautica 2

(Image: Unknown Worlds)

2 min. read

The chaos surrounding "Subnautica 2" continues: A court in Delaware has ruled that the CEO of Unknown Worlds, dismissed by publisher Krafton, must be reinstated. The dismissal of CEO Ted Gill and the two founders Charlie Cleveland and Max McGuire was unlawful, the court wrote in its ruling. Gill is now to regain operational control over the project.

Krafton had surprisingly dismissed the two founders and the CEO of the game studio Unknown Worlds, which the South Korean publisher had bought in 2021, in the summer of last year. The suspicion quickly arose that it could have been a strategic decision to prevent Unknown Worlds from meeting the requirements for a 250 million US dollar earn-out clause. Krafton had also postponed the release of "Subnautica 2" at the same time.

To qualify for their bonus payments, Unknown Worlds employees originally had to reach certain financial milestones by the end of 2025 – not feasible without the boost from potential "Subnautica 2" sales. Following public criticism, Krafton eventually extended the deadline for bonus payments. The court has now set a new deadline until September 15, 2026, for the time being.

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Krafton has always denied any improper intentions and accused the dismissed managers of neglecting their work. However, the Delaware court has now ruled that this decision was unlawful. Krafton could not provide a justified reason for the dismissals. He had transparently disclosed that the CEO was pursuing other projects concurrently. Therefore, it cannot be considered deception.

The court will clarify possible claims for damages in a second phase of the proceedings. The dismissed Unknown Worlds managers and Krafton had publicly criticized each other. Finally, Ted Gill, Charlie Cleveland, and Max McGuire decided to file a lawsuit.

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What this means for the development of "Subnautica 2" is unclear. The survival game follows the first part, which is considered the best survival game of all time and was very successful financially. Employees of the studio Unknown Worlds have continued their work in recent months and released several developer videos. There is no new early access date for "Subnautica 2" yet.

(dahe)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.