Krafton settles with Subnautica 2 developer after drawn-out dispute over $250 million

Krafton has settled its legal dispute with subsidiary Unknown Worlds Entertainment, the developer of Subnautica 2, and will pay bonuses to the studio’s staff. The conflict followed Krafton’s removal of key executives before a potential $250 million bonus tied to financial goals; Subnautica 2 later launched in early access and sold four million copies in five days.

The settlement may ease tensions around one of Krafton’s strongest-performing franchises, but it also highlights ongoing friction between publishers and acquired studios over earnouts and creative control. The case underscores how incentive structures in gaming acquisitions can become flashpoints when a title outperforms expectations.