Krafton ordered to pay $250 million bonus to Unknown Worlds after Subnautica 2 sales hit targets

The Delaware Court of Chancery has ruled that publisher Krafton is required to pay a $250 million earnout bonus to developer Unknown Worlds for Subnautica 2. The decision follows a legal dispute in which Krafton allegedly attempted to delay the game’s release and avoid the payout after the title sold at least 4 million copies in early access, meeting the contract’s revenue targets.

Krafton acquired Unknown Worlds in 2021, establishing a contract that stipulated the bonus if specific revenue thresholds were achieved. The developers initially missed the original 2025 revenue target window because Krafton delayed the game. The court found that Krafton, led by CEO Changham Kim, sought to cancel the earnout to avoid professional embarrassment and prevent Kim from appearing weak.

In an effort to circumvent the obligation, Kim reportedly consulted ChatGPT for strategies on how to avoid the payout. The AI noted it would be difficult to cancel the earnout, yet Krafton proceeded with a convoluted plan known as Project X, aimed at negotiating a lower bonus or taking over the studio. Vice-chancellor Lori Will stated that Krafton looked to buy time and followed most of ChatGPT’s recommendations over the following month.

The legal battle also involved personnel changes, with Krafton firing the CEO of Unknown Worlds and other co-founders before a judge forced a reversal of those decisions. The ruling confirms that the revenue targets have been met, and the payout is likely forthcoming, ending the publisher’s attempts to withhold the funds.

This development occurs as Krafton has announced its transformation into an "AI first" company. The court’s intervention ensures that the developers receive the compensation agreed upon in the acquisition contract, despite the publisher’s earlier resistance and strategic delays.