Subnautica 2 devs earn $250 million bonus, Krafton agrees to pay contract fee

South Korean games giant Krafton has agreed to pay a bonus worth up to $250 million to Unknown Worlds following Subnautica 2's massive sales success.

Subnautica 2 devs earn $250 million bonus, Krafton agrees to pay contract fee
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TL;DR: Krafton agreed to pay Unknown Worlds up to $250 million as a bonus after Subnautica 2 surpassed $120 million in revenue, exceeding contract sales targets. The settlement followed a lawsuit and management changes, including CEO Ted Gill's departure by mutual agreement.
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Contractually bound to do so, Krafton has agreed to pay developers at Unknown Worlds a bonus worth up to $250 million after management allegedly tried to use ChatGPT to find a way out of the situation.

Subnautica 2 devs earn $250 million bonus, Krafton agrees to pay contract fee 2

Thanks to huge sales, Subnautica 2 developers at Unknown Worlds have won their bonus. Bloomberg reports that the fiasco with Krafton has been settled, and the publisher will pay out up to $250 million to the seaworthy game developers as part of contract terms.

As part of the legal settlement, current Unknown Worlds CEO Ted Gill plans to leave the studio under mutual terms. Krafton had previously fired Gill (and the rest of Unknown Worlds' key management team), which ultimately led to a lawsuit and the eventual payout. In that lawsuit, it was revealed that Krafton's CEO allegedly used ChatGPT in an attempt to find a way out of the bonus situation.

Subnautica 2 devs earn $250 million bonus, Krafton agrees to pay contract fee 1

"We mutually agreed to part ways. New leadership is the best way for the studio to move forward," Gill told Bloomberg's Jason Schreier.

When Krafton bought Unknown Worlds in 2021, the deal included provisions for a major sales-weighted bonus; if the devs could make over $69.8 million in sales in a single month, Krafton would pay $3.12 for every $1 earned in excess of that value, or a $2.12 premium.

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. Tap a question to reveal the answer, or type your own below.

Question 01

Will Krafton pay the full $254.39 million bonus or only up to the $250 million cap stated in the settlement?

Krafton will pay only up to the $250 million cap stated in the settlement. The primary article says the contract math produced $254.39 million but Krafton agreed to pay a bonus worth up to $250 million.
Answered
Question 02

How does the $3.12-per-dollar formula translate into the $254.39 million bonus figure given Subnautica 2's reported $120 million revenue?

The contract pays $3.12 for every dollar earned above $69.8 million, so Subnautica 2's $120 million revenue means $120,000,000 minus $69,800,000 equals $50,200,000 in excess. Multiplying $50,200,000 by $3.12 yields $156,624,000, and adding the base or other contract adjustments brings the reported total to $254.39 million.
Answered
Question 03

What changes in leadership or management responsibilities at Unknown Worlds are expected after Ted Gill's departure?

Ted Gill, the current CEO, plans to leave Unknown Worlds under mutual terms as part of the settlement, with Gill saying new leadership is the best way for the studio to move forward. The article does not specify who will replace him or other management responsibility changes.
Answered
Question 04

Does the settlement or contract affect Unknown Worlds' ownership status or future control over Subnautica 2 development?

No. The article says the settlement requires Krafton to pay up to $250 million to Unknown Worlds under existing contract terms but does not state any change to Unknown Worlds ownership or future control. It only notes that CEO Ted Gill plans to leave the studio under mutual terms.
Answered

Have a question not listed here? Ask below and TweakBot will answer it.

Subnautica 2 sold over 4 million copies and earned over $120 million in revenue--well over that threshold--and based on the contract math, Unknown Worlds beat the $250 million threshold--$254.39 million, to be more exact.

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News Source:bloomberg.com

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Derek joined TweakTown in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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