Fired Subnautica 2 CEO must be reinstated, judge rules, and "may proceed with the early access release of Subnautica 2 when he deems it appropriate"

Update - March 16: Krafton sent the following statement to GamesRadar+ regarding this order and the ongoing litigation.

"KRAFTON puts players at the heart of every decision, and that will never change," it reads. "Over the past several months, KRAFTON and the Unknown Worlds team have worked tirelessly to strengthen the game and prepare it for an Early Access release, with a continued focus on delivering the best possible experience for the Subnautica community. We look forward to pushing out the newly updated version as soon as possible for players.

"While we respectfully disagree with today’s ruling, we are evaluating our options as we determine our path forward. Today’s ruling does not resolve the former executives’ claim for damages or an earnout related to Subnautica 2, with further litigation still pending. In the meantime, KRAFTON's immediate focus remains unchanged: delivering the best possible game to Subnautica’s fans."

Original story:

Ousted Subnautica 2 CEO Ted Gill must be reinstated under a court order freshly filed by the Delaware Court of Chancery, giving Gill control of the Steam early access release of the long-waited, now-delayed undersea survival game.

This order follows a messy legal battle between Gill, joined by fellow Unknown Worlds executives Charlie Cleveland and Max McGuire, and new studio owner Krafton. The case erupted in 2025 after Krafton replaced all three executives in a move that a lawsuit, filed by the three executives, called an attempt to avoid a promised $250 million earnout bonus. Krafton has repeatedly accused the executives of neglecting their roles and insisted it acted "to ensure Subnautica 2 is the best possible game and lives up to fan expectations," but it's now suffered a significant blow in court.

Per Bloomberg Law, Vice Chancellor Lori W. Will reasons that "Krafton breached the EPA [Equity Purchase Agreement] by terminating the Key Employees without valid Cause and by improperly seizing operational control of Unknown Worlds."

A separate section reinforces the point: "None of Krafton's proffered justifications have merit."

"To remedy these breaches, Gill is reinstated as CEO of Unknown Worlds with full operational authority over the studio," Will's opinion reads. "Because restoring him vindicates the sellers' operational rights, I decline to return Cleveland and McGuire to the peripheral roles they occupied before their terminations. Gill–with his authority restored–may proceed with the early access release of Subnautica 2 when he deems it appropriate."

Gill's "period of operational control will be extended by the duration of his ouster" to address lost time, the order adds.

More to the point, "Krafton must also immediately restore to Gill all access necessary to effectuate that authority, including over the Steam publishing platform." Additionally, Krafton is "enjoined from using the Unknown Worlds board, or any other corporate lever" to impede or circumvent Gill's "decision-making authority over the early access launch of Subnautica 2."

Similarly, Unknown Worlds will have an additional nine months to hit the benchmarks that would earn it the $250 million earnout at the center of much of this mess. The studio now has until at least September 15, 2026.

The case is not over, and Subnautica 2 won't suddenly launch tomorrow, but this order moves the needle on a long-simmering case.

"Gill forcefully testified that he wants to return to the studio to 'finish what [they] started' and 'make a really positive impact' on the team," the opinion reads.

"Unknown Worlds is being run by a part-time CEO who manages another studio and had never played Subnautica before his appointment," it continues. "Key staff members have quit, and the early access release of Subnautica 2 has been put in jeopardy."

Will notes that "whether Krafton's actions wrongfully impaired the earnout, and whether any resulting money damages are owed, are reserved for the second phase of this litigation."

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