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Unknown Worlds Entertainment
July 5, 2026 at 12:01 AM
Updated leadership: Ted Gill stepping down per July 2026 settlement; external CEO search; noted lawsuit settled
Unknown Worlds Entertainment is the developer and, as of April 7, 2026, the publisher of Subnautica 2. The studio is based in San Francisco, California, operates as a fully remote, globally distributed team of approximately 171 employees, and has been a wholly owned subsidiary of KRAFTON since December 2021. On April 7, 2026, the Subnautica 2 storefront listings on Steam, the Epic Games Store, and Xbox were updated to show Unknown Worlds Entertainment as both developer and publisher; KRAFTON remains the parent company and has stated it continues to support the Early Access launch.
Ted Gill was reinstated as CEO of Unknown Worlds by court order on March 16, 2026, which restored his full operational authority over the studio, including authority over the Subnautica 2 Early Access launch and Steam platform access. In July 2026, as part of the settlement that ended the KRAFTON earnout dispute, Gill stepped down as CEO; he called it a mutual decision and said new leadership was the best way for the studio to move forward. KRAFTON and Unknown Worlds began searching for a new chief executive from outside both companies. Gill had previously served as CEO until July 2025 and led the studio through the lead-up to Early Access. Co-founders Charlie Cleveland and Max McGuire were not reinstated. See KRAFTON Acquisition and Controversy for the full background of the leadership change and the lawsuit.
Steve Papoutsis was installed as CEO by KRAFTON on July 2, 2025 after the studio's co-founders and Ted Gill were removed. Following the March 16, 2026 court ruling that reinstated Gill, Papoutsis no longer holds operational authority over Subnautica 2. Prior roles include senior production positions on AAA action titles and the CEO role at KRAFTON subsidiary Striking Distance Studios.
The development team publicly fronting Subnautica 2 development across dev vlogs and community engagement.
Name | Role on Subnautica 2 | Background |
|---|---|---|
Anthony Gallegos | Design Lead | Hosts the Dev Vlog series. Former games journalist. Prior design work at Gazillion Entertainment (Marvel Heroes), Zombie Studios, and Echtra Games (Torchlight III). Articulated the Subnautica 2 design pillars of no weapons and optional co-op. |
Seth Dickinson | Senior Narrative Designer | Responsible for Subnautica 2's story and world-building on Proteus. Joined Unknown Worlds in May 2022. Previously wrote the Books of Sorrow and other lore for Bungie's Destiny franchise, and authored the Masquerade science fiction novel series. |
Cory Strader | Visual Development Lead | Directs the visual design pipeline for Subnautica 2. Featured prominently in Dev Vlog 3 (Collector Leviathan) and Dev Vlog 4 (Tadpole). Joined Unknown Worlds in 2008. Art-directed all prior Unknown Worlds releases. |
Ben Prunty | Composer | Composing the Subnautica 2 soundtrack. Notable prior soundtrack credits include indie titles such as FTL: Faster Than Light and Into the Breach. |
Unknown Worlds has operated as a remote-first studio for most of its history, predating the industry-wide shift to remote work during COVID-19. The team is distributed globally across multiple time zones. The no-weapons philosophy that defines Subnautica 2's design is a continuation of a deliberate stance the studio has held in its prior work.
KRAFTON acquired Unknown Worlds in late 2021 for $500 million upfront plus up to $250 million in performance-based earnout. Under KRAFTON, the studio developed Subnautica 2 in Unreal Engine 5. In July 2025, KRAFTON replaced the studio's co-founders (Charlie Cleveland and Max McGuire) and CEO Ted Gill with Steve Papoutsis. The removed leadership filed a $250 million earnout lawsuit that went to trial in November 2025. On March 16, 2026, the Delaware Court of Chancery reinstated Ted Gill as CEO of Unknown Worlds with full operational authority over Subnautica 2 and the Steam platform; the court barred KRAFTON from impeding Gill's authority over the Early Access launch. Cleveland and McGuire were not reinstated. Following that ruling, Unknown Worlds confirmed the Early Access launch for May 14, 2026. In July 2026, the two sides reached a settlement that dismissed all pending proceedings: KRAFTON agreed to pay the promised staff bonuses in three annual installments and Ted Gill stepped down as CEO, with both companies seeking an external successor. See KRAFTON Acquisition and Controversy for the full account.
