Newstor

Subnautica 2 legal dispute ends as Krafton and founders settle

Krafton and Unknown Worlds founders settle the Subnautica 2 legal battle, with reinstated CEO Ted Gill stepping down voluntarily.

Subnautica 2 legal dispute ends as Krafton and founders settle cover image.
FIG.01 / subnautica-2 / full colour
Newstor

3 min read

subnautica-2

The Subnautica 2 legal saga is finally over. Publishers Krafton and the three Unknown Worlds leaders they fired last year have agreed a settlement.

You might remember the twist: one of those three, CEO Ted Gill, got reinstated by a judge’s order back in March. That made things interesting. Now the settlement’s done, he’s stepping down voluntarily.

What happened

The dispute kicked off when Krafton fired three Unknown Worlds founders in 2025. Gill fought back in court, won a temporary reinstatement, and then this settlement arrived on July 1, 2026.

“Shake hands with the nearest underwater critter.”

That’s the tone from the announcement. It’s over. No more courtroom drama for the Subnautica team.

What comes next

Gill leaves his post by choice this time. The other two fired leaders are part of the settlement too, though specifics on their roles aren’t in the source. Krafton keeps publishing Subnautica 2, and Unknown Worlds keeps developing it.

The settlement terms aren’t public. But the legal fight that split the studio is done. That’s the concrete outcome — a messy, public battle ends with a handshake and a CEO walking away.

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