KRAFTON to pay up to $250M to Subnautica 2 developers

KRAFTON has agreed to pay up to $250 million to former shareholders of Unknown Worlds after Subnautica 2’s commercial performance triggered bonus terms in the studio’s 2021 acquisition agreement.

Under the 2021 deal, former shareholders are entitled to $3.12 for every $1 the studio earns whenever monthly revenue exceeds $69.8 million, subject to a $250 million cap. Reporting indicates Subnautica 2’s sales pushed revenues past that monthly threshold, activating the contingency payment.

The payment follows a prolonged legal dispute between Unknown Worlds staff and KRAFTON. Developers accused the publisher of delaying the game’s release to avoid triggering the bonus payments, while KRAFTON said studio leadership had neglected the project. The case ended with the reinstatement of Unknown Worlds’ chief executive.

Unknown Worlds released Subnautica 2 as a survival simulator. The studio was acquired by KRAFTON in 2021, and the contingent payment clause was included in that acquisition to compensate former shareholders if the studio’s monthly revenue exceeded the agreed threshold.

The payout is unusually large for an earn-out arrangement and is estimated to equal roughly 35% of KRAFTON’s operating profit from the prior year, according to the report. The formula means a single month of high sales can create substantial additional liability for the publisher, up to the agreed maximum.

KRAFTON confirmed it will fulfill the contractual obligations tied to the acquisition. The payment settles the bonus claim linked to Subnautica 2’s commercial performance.