Ted Gill

Ted Gill is the former CEO of Unknown Worlds Entertainment. He was removed from his position on July 2, 2025, when KRAFTON replaced the studio's leadership, firing Gill alongside co-founders Charlie Cleveland and Max McGuire. He was replaced by Steve Papoutsis, who was transferred from KRAFTON subsidiary Striking Distance Studios.

Role at Unknown Worlds

Gill served as CEO of Unknown Worlds, overseeing the studio's operations and the development of Subnautica 2. While Cleveland and McGuire were the studio's co-founders with long public histories (Cleveland created Natural Selection; McGuire built the Spark engine), Gill's role was more operationally focused. His public profile prior to the KRAFTON controversy was limited compared to the founders.

Removal and lawsuit

On July 2, 2025, KRAFTON removed Gill, Cleveland, and McGuire from Unknown Worlds and installed Papoutsis as the new CEO. KRAFTON's CEO Kim Chang-han later testified that the founders had "effectively stopped working" on Subnautica 2 as of May 2025.

Gill joined Cleveland and McGuire as a plaintiff in a lawsuit filed in July 2025 by Fortis Advisors LLC in Delaware Chancery Court. The lawsuit alleges KRAFTON deliberately sabotaged Subnautica 2's development to avoid paying a $250 million earnout tied to the game's release milestones. The earnout was part of KRAFTON's $750 million acquisition of Unknown Worlds ($500 million upfront plus $250 million in performance-based payments due by June 2026). The founders intended to distribute the earnout among approximately 100 employees.

KRAFTON's counterclaims

KRAFTON counter-sued in August 2025, alleging that the founders "abandoned the studio and took confidential information" before their departure. According to KRAFTON's filings, Gill specifically exported his entire company email account twice, triggering IT alerts. See the full KRAFTON Acquisition and Controversy article for complete lawsuit details, including the Project X internal task force, ChatGPT allegations, and trial proceedings.

Earnout negotiation

Court filings reveal that a KRAFTON executive allegedly attempted to negotiate a lower earnout directly with Gill on June 18, 2025, approximately two weeks before the leadership change. This is cited in the lawsuit as evidence that KRAFTON was seeking to reduce the payout obligation before ultimately removing the leadership team entirely.

Trial status

A three-day trial took place November 17-19, 2025. Post-trial arguments were held January 9, 2026. As of March 2026, no ruling has been publicly announced. The plaintiffs (including Gill) demand full reinstatement, payment of the complete $250 million earnout, and additional damages for reputational harm and lost income. KRAFTON has stated it is "nonsense" for the founders to return.