A court decision has determined that Krafton, the prominent South Korean video game company, must reinstate Ted Gill as the CEO of Unknown Worlds after his dismissal in July 2025. The ruling also mandates that he resume full operational oversight of the studio, including the Early Access launch of Subnautica 2.

In a favorable outcome for Unknown Worlds during the initial phase of its legal disputes against Krafton, the court found that Krafton violated the Employment Protection Act (EPA) by wrongfully terminating key employees and wrongfully taking control of unknown Worlds. Consequently, the resolution that led to Gill and his fellow developers’ termination has been rendered “ineffective.”

Gill is set to regain access to the Steam platform for Subnautica 2, in addition to an extension of the $250 million bonus payout timeframe established during Unknown Worlds’ sale to Krafton. The co-founders who were facing the loss of this bonus can now have the opportunity to earn it again through 2026 and possibly beyond.

Krafton’s justification for the terminations was that the developers had “abandoned their responsibilities,” a claim that the affected individuals have contested, arguing that they were effectively forced out to avoid paying the substantial bonus. Following their dismissal, the trio of developers was replaced by Steve Papoutsis, who also holds the position of CEO at Striking Distance.

Stay tuned for further updates on this developing story.