‘It’s going to be extremely hard to repair the relationship:’ The Subnautica 2 legal dispute is far from over
The Subnautica 2 legal dispute between Unknown Worlds’ leadership and studio owner Krafton continues to develop. In March, Delaware State Court of Chancery ordered the reinstatement of Ted Gill as CEO of Unknown Worlds, marking a significant turn in the ongoing legal battle that began in July 2025.
The dispute centers on allegations made by Gill and two other Unknown Worlds executives, who claim that Krafton, the South Korean company that owns the studio, intentionally delayed Subnautica 2’s development to avoid paying an additional $250 million payout. The executives argue that Krafton also committed other wrongdoings as part of this strategy.
Krafton has denied these allegations and filed its own countersuit, asserting that Unknown Worlds’ leadership team abandoned the game’s development and misappropriated Subnautica 2 materials and assets. This escalation has created a heavily contested legal situation with both sides making serious accusations against each other.
The court’s decision to reinstate Gill suggests some judicial sympathy for the executives’ position, though the case remains far from resolution. The dispute highlights tensions that can arise between independent studios and larger corporate owners, particularly regarding financial incentives and game development timelines. Industry observers note that repairing the relationship between the parties will be extremely difficult moving forward.