Judge Rules Krafton Must Rehire Subnautica Studio Director

A judge has ruled that publisher Krafton must reinstate Ted Gill as CEO of Unknown Worlds Entertainment. Gill and two other co-founders were dismissed last year as part of a restructuring related to the development of the long-awaited sequel, Subnautica 2.

The Delaware judge found that Krafton had violated the terms of its contract with Unknown Worlds by terminating the executives. Judge Lori W. Will wrote: "To remedy these breaches, Gill is reinstated as CEO of Unknown Worlds with full operational authority over the studio."

A Krafton spokesperson expressed disagreement with the ruling, stating that the company "is evaluating its next steps." Further litigation concerning potential damages is anticipated.

This legal dispute has been ongoing for some time. Krafton acquired Unknown Worlds in 2021. The contract included a $250 million bonus for executives and staff if specific financial targets were met by 2025. These targets were not achieved because Krafton delayed the release of Subnautica 2.

According to pretrial documents, Krafton CEO Changham Kim allegedly canceled the bonus payments, fearing "professional embarrassment." He reportedly consulted ChatGPT on ways to avoid the payout and even considered a hostile takeover through a new entity.

Judge Will criticized Kim's actions, stating he regretted the commitment to the payments and "consulted an artificial intelligence chatbot to devise a corporate 'takeover' strategy." Krafton reiterated its displeasure with the ruling but noted that it does not definitively resolve the entire dispute.

Regarding the game itself, Krafton asserts that Subnautica 2 will be released "sooner rather than later." However, similar statements have been made before.