Below Zero

Inside The $250 Million Subnautica 2 Battle

The legal and corporate conflict surrounding the release of Subnautica 2 centers on a $250 million performance-based bonus that the publisher, Krafton, attempted to avoid paying to the developer, Unknown Worlds Entertainment.

• A Delaware court ruled in March 2026 that Krafton attempted to terminate the leadership of Unknown Worlds Entertainment to avoid paying a $250 million performance-based bonus tied to the acquisition of the studio.
• The court found Krafton’s allegations of data theft and neglect of duty against CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire to be pretextual maneuvers designed to evade contractual obligations.
• A July 2026 settlement mandated that the $250 million bonus be paid to studio employees, including staff previously excluded from the original incentive agreement, with payments distributed in installments through 2028.