Krafton to extend bonus payout schedule after Subnautica 2 delay

South Korean game publisher Krafton Inc. has extended the timeline for a potential bonus payout to employees at its subsidiary, Unknown Worlds.

This decision follows the delay of the studio’s upcoming survival game, Subnautica 2, which is now scheduled for release in 2025.

Around 40 employees were eligible for a US$25 million bonus based on meeting revenue targets by the end of 2025.

Following the game’s delay, staff raised concerns that these targets might not be achievable, threatening their potential earnings.

In response, Krafton has extended the bonus deadline by an additional year.

The company will also advance a portion of the studio’s projected profit-sharing bonus for 2026 to all Unknown Worlds employees this year.

Unknown Worlds is currently involved in a dispute with Krafton following the dismissal of the studio’s former leadership, including CEO Ted Gill and founders Charlie Cleveland and Max McGuire.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Gaming acquisitions with earnout structures introduce unique tensions

The Krafton-Unknown Worlds dispute highlights a common challenge in gaming industry acquisitions: earnout agreements that create conflicting incentives between parent companies and acquired studios.

Earnouts, like the $250 million contingent payment in this case, are increasingly common in gaming M&A, often representing up to 25% of total purchase prices and creating deferred payments tied to post-acquisition performance metrics 1.

These structures attempt to bridge valuation gaps between buyers and sellers but frequently lead to disputes over performance measurement, as evidenced by the leadership team’s lawsuit against Krafton 2.

This conflict occurs because earnouts create opposing incentives: acquired studio leaders push for faster releases to hit revenue targets within earnout timeframes, while parent companies prioritize quality and long-term brand value over short-term revenue 3.

The gaming industry’s unpredictable development timelines amplify these tensions, with research showing project delays and budget overruns are common risk factors even in well-managed studios 4.