The Delaware Chancery Court sided with the dismissed executives of the Unknown Worlds studio in the initial stage of their dispute with the South Korean giant KRAFTON.
Subnautica 2
After a thorough analysis of the situation, the court concluded that KRAFTON violated the terms of the agreement with its subsidiary Unknown Worlds by firing Ted Gill, Max McGuire, and Charlie Cleveland in July 2025. The court ordered the company to reinstate Gill as the CEO of the studio and restore all his former powers, including the right to choose the release date of Subnautica 2. However, the court did not compel KRAFTON to rehire McGuire and Cleveland, who had recently been focusing more on personal projects than on the game.
The court also extended the period during which the creators of Subnautica could receive the promised $250 million bonus. They now have until September 15, 2026, with the option to extend the period by another six months if necessary.
Interestingly, in its decision, the court labeled the arguments KRAFTON presented against the Unknown Worlds executives as "fabricated." Specifically, it criticized the company's claim that Gill, McGuire, and Cleveland, upon learning of plans for their termination, downloaded thousands of files containing confidential information, including copies of work correspondence, without permission.
"The former employees did this with the aim of protecting the studio's work results amid KRAFTON's attempt to seize control. They maintained data confidentiality and promptly returned it," the court noted.
KRAFTON representatives have already stated their disagreement with the verdict.
It is worth noting that the dispute between KRAFTON and the fired top managers is not yet fully resolved. In the second stage, the court will examine whether the company indeed attempted to hinder the release of Subnautica 2 in an effort to avoid paying the large bonus.