Subnautica 2 has exceeded expectations, and it still hasn't been released fully yet. And the game's initial overperformance is now set to benefit the Subnautica 2 team by $250 million.

Subnautica 2 is a product of Unknown Worlds Entertainment and a continuation of the Subnautica franchise. The new game maintains its no-weapon, no-violence policy while also extending the experience to include a multiplayer mode that has really captured the audience's attention.

KRAFTON acquired the studio in a deal that included an upfront payment of $500 million and other clauses. The clauses included performance-based incentives post the game's release. Subnautica 2 was on over 5.5 million wishlists before the game was even available.

The game has sold over 4 million copies in its first week across platforms. Launch week alone has made the studio, and ultimately, KRAFTON, over $100 million.

According to reports, the deal included a clause in which the founders would earn a certain amount for every dollar of revenue above the threshold.

And Subnautica 2's performance entails that KRAFTON is reportedly set to dole out the maximum ceiling of $250 million as payout to the Unknown Worlds Entertainment founders as part of the deal.

Further reports suggest the payout will end up consuming more than a third of KRAFTON's annual operating profit and will be one of the largest ever bonus payouts in the gaming industry, if the reports are true.

The Controversy Surrounding KRAFTON and the Subnautica 2 Studio Acquisition

The deal did bring in video game series like Subnautica and Natural Selection under the KRAFTON umbrella, with the studio also responsible for the sci-fi shooter Moonbreaker.

However, it was mired in controversy, especially after KRAFTON decided to remove key figures like Charlie Cleveland, Ted Gill, and Max McGuire from the studio.

The founders also took KRAFTON to court, alleging that the game's release was delayed to avoid the bonus payout, with the court ruling in their favor. Ted Gill was reinstated as the CEO, and the payout threshold was extended into 2026.

While the studio and KRAFTON struggled to come to a mutual agreement regarding the control of studio operations and key decisions, Subnautica 2's success would mean it's water under the bridge for both.

They can now enjoy the success of their video game title, which seems to be creating new records every week, with the number of copies they are selling early on.

And as further updates await the Subnautica 2 game, users will be treated to much more, and KRAFTON can reap the benefits of their decision to acquire the studio, albeit with the $250 payout to the founders.

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Written by

Abhisek Bajaj

Edited by

Zaid Quraishi