A judge officially ordered the original lead back behind the studio Subnautica 2Ending the messy legal battle that stalled one of the most anticipated titles on Steam. The court ruled that the publisher, Crafton, must immediately reinstate CEO Ted Gill to his position at Unknown Worlds. This legal victory for the developers comes after a nine-month battle that saw the founders evicted and the future of Subnautica 2 Trapped in uncertainty.
The friction between the two companies began shortly after Crafton purchased Unknown Worlds in 2021. As part of that deal, a large performance-based bonus was on the table, which could have earned the development team up to $250 million if the studio met certain financial goals by the end of 2025. The team had planned to reach those numbers. Subnautica 2 Early Access in late 2024 or early 2025, a window that may have triggered the payout. However, the relationship cooled as the deadline approached, leading to a sudden corporate takeover that eliminated the creative people. Subnautica suffrage
Subnautica 2's Krafton Controversy Explained
The leadership team at Krafton Unknown Worlds, the developer of Subnautica 2, has come under fire for terminating before a $250 million payment.
The court overturned the founders' “wrongful” termination
Delaware Chancery Court Vice Chancellor Lori W. Will found that Crafton breached its contract by firing Gill and co-founders Charlie Cleveland and Max McGuire without just cause. The judge described the publisher's actions as a “wrongful seizure of operational control” and announced a July 2025 board resolution that ousted the leaders. The court has now ordered the publisher not to interfere with Gill's power over the project's roadmap, budget or launch strategy.
The decision was particularly harsh regarding the motive behind the shooting. According to Bloomberg Law, the court found that Crafton's claim about the founders being “disconnected” was a pretext. Instead, the evidence suggested that the publisher engaged in “obstructive tactics”, such as pulling marketing support and blocking key partnerships, specifically to ensure the game would miss its 2025 release window. The judge noted that the sequel was indeed “feature-complete” and set to debut in late 2024, but Crafton sought to “frustrate” the milestones to avoid the $250 million payment.
One of the more bizarre aspects of the case involved the alleged use of artificial intelligence to plan the takeover. Court documents suggest that Crafton CEO Changhan Kim consulted an AI chatbot to avoid paying a multi-million dollar bonus. The lawsuit claimed that ChatGPT actually advised the CEO that it would be “difficult to cancel earnings.” Despite this advice, the publisher went ahead with the dismissal, citing the “absence of original leadership” as the official reason.
Internal messages revealed during the trial further fueled the founders' claims. Exchanges between top Crafton executives suggested they feared the payment would reduce the studio's long-term value. One message also suggested that the studio might “take it easy” rather than renegotiate a lower bonus. Crafton has denied these allegations, insisting there was a delay Subnautica 2 It was strictly about improving the quality of the game and ensuring that fan expectations were met.
In an unusual move, the judge ruled that simply paying the founders for their lost wages would not be enough. According to Bloomberg Law, the court ruled that the original team's “unique creative vision” was essential to the game's reputation and the studio's survival. As a result, several legal orders have been issued to resolve the dispute. Ted Gill has been reinstated as CEO of Unknown World and now has full operational authority over the production roadmap, budget, and launch plan for the sequel. Crafton should immediately restore Gil's administrative access to the Steam platform so that he can manage the title's presence on the store. Because Crafton's intervention made it impossible to meet the original 2025 deadline, the judge extended the $250 million earnings eligibility period to mid-September 2026. In addition, the co-founders retain the contractual right to request an additional extension of this payment window until March 15, 2027, if necessary.
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While a specific release date has not been set, Subnautica 2 It is now expected to move towards its Early Access launch on PC and Xbox Series X/S later this year. With the original leads back at the helm, fans seem to be hoping the sequel stays true to the vision of making the first game a hit. Unknown Worlds has also confirmed that the game will not feature generative AI, a notable stance given Crafton's recent branding as an “AI-first company”.
According to Bloomberg, a Crafton spokesperson said that while they “respectfully disagree” with the decision, they are evaluating their options moving forward. Meanwhile, the founders called the decision a “full testament” to their team's hard work. For now, a legally restrained intervention from Crafton means the developers are finally free to finish the game on their own terms.
Source: Delaware Chancery Court
