Seoul: Krafton Inc. announced in a regulatory filing on Wednesday that it has reached a settlement with the lead developers of the popular Subnautica video game franchise, Unknown Worlds Entertainment Inc., thus ending their legal battle over contested earn out bonuses.

According to Yonhap News Agency, the South Korean gaming giant and the U.S.-based studio have agreed to withdraw all ongoing lawsuits as of Tuesday. Krafton acquired Unknown Worlds in October 2021, aiming to expand its portfolio beyond the widely successful PUBG: Battlegrounds. At the time, Krafton praised Unknown Worlds for its strong intellectual properties and the community-driven appeal of its games, such as the critically acclaimed Subnautica.

The dispute began last year when Krafton removed Unknown Worlds' co-founders and CEO Ted Gill over alleged leadership deficiencies and delays in the development of Subnautica 2. This led to a lawsuit filed by the former executives in the Delaware Court of Chancery, accusing Krafton of attempting to avoid a US$250 million bonus payment by intentionally stalling the game's progress.

In March, the U.S. court sided with Unknown Worlds, ordering Krafton to reinstate the dismissed executives. An official statement from the company highlighted a renewed focus on supporting Subnautica 2's journey from Early Access to its full release, emphasizing the importance of the global community that has supported the franchise.

Unknown Worlds will continue spearheading the game's development, with Krafton providing necessary support to ensure its success. Following its early access launch in May, Subnautica 2 has sold over 4 million copies, showcasing the franchise's enduring popularity.