Subnautica 2 Legal Battle Continues: Krafton Faces Court Order to Reinstate CEO and Extend Bonus Window

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The dispute between the team making Subnautica 2 and its publisher, Krafton Inc., continued in March 2026 with a ruling from a Delaware court. The court reinstated CEO Ted Gill, confirmed a $250 million performance bonus for the studio, and prevented Krafton from delaying or interfering with the game’s launch. This legal battle started over disagreements about releasing the game in early access and how quickly the development process should move forward.

Court Orders Krafton to Reinstate CEO Ted Gill

A recent ruling has been a major win for the original backers of Subnautica 2. Vice Chancellor Lori W. Will decided that Krafton broke its contract by letting go of important leaders, including Ted Gill. As a result, the court has ordered Ted Gill to be brought back as CEO of Unknown Worlds Entertainment, giving him complete control over the development and launch of the game.

The decision also gave the developers more time to reach the revenue goals needed to earn a $250 million bonus, by extending the deadline for achieving those targets.

The Origins of the Dispute: Subnautica 2 Delays and Executive Firings

The trouble started in July 2025 when Krafton let go of Ted Gill, along with co-founders Charlie Cleveland and Max McGuire. Steve Papoutsis, from Krafton’s Striking Distance Studios, took their place. Krafton said the reason for the dismissals was that development of Subnautica 2 was falling behind schedule, and they moved the planned early access launch to 2026.

The developers claimed Krafton was trying to avoid paying a performance bonus that could have reached as high as $250 million. Krafton countered that the game wasn’t finished and needed new leadership to be completed.

AI Controversy: Krafton’s Use of ChatGPT in Strategy Development

Recent court documents revealed a surprising detail: Krafton’s CEO, Changhan Kim, used ChatGPT to help create a plan to postpone the game and avoid paying bonuses. This use of AI in important legal and business choices by Krafton raised ethical concerns. Ultimately, the court determined that Krafton’s dependence on AI contributed to their violation of the contract.

This whole situation has really got me thinking about how companies are starting to use AI to make big decisions, especially when it comes to legal stuff. It’s sparked a much bigger conversation about whether that’s a good idea and how it should be done.

Early Access Disputes: Krafton’s Announcement Stirs New Controversy

Even after the court made its decision, another disagreement surfaced regarding when Subnautica 2 would be released in early access. Steve Papoutsis, who was appointed by Krafton, stated that Subnautica 2 was prepared for early access in May 2026. This announcement went against the court’s ruling and led to worries that it might undermine the CEO’s authority over the game’s release schedule.

Lawyers are waiting for the court to clarify if the public statement could be considered a violation of court rules, or if it was simply a private message.

What’s Next for Subnautica 2 and Krafton?

  • Krafton is considering appealing the court’s decision, which could delay any final resolution.

  • The developers and the company still disagree about the $250 million bonus, and they are likely to continue fighting it out in court to decide if the developers deserve the full amount.

  • Players are eager to find out when Subnautica 2 will be available in early access, and Ted Gill is still the one making the final decision about the release date.

The disagreement between the creators of Subnautica 2 and their publisher, Krafton, is a prime example of the increasing conflicts around control and money in the video game industry. As of March 2026, Krafton and Unknown Worlds Entertainment are still locked in a significant legal dispute that could change how game development deals are made in the future.

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2026-03-21 00:28