Krafton’s Management Shakeup: The Future of Subnautica 2 in Question

In a surprising turn of events, Krafton, the parent organization of Unknown Worlds—renowned for its development of the acclaimed Subnautica series—announced significant leadership changes last week. Founders Charlie Cleveland, Max McGuire, and Ted Gill have exited the studio, making way for new leadership under Steve Papoutsis, the former head of Striking Distance Studios.

Following this executive shift, the remaining team members at Unknown Worlds sought to reassure fans regarding the ongoing development of Subnautica 2. They asserted their dedication to crafting a sequel that lives up to community expectations. Cleveland also shared a heartfelt goodbye message to players, expressing his belief that Subnautica 2 was poised for an early access release by the end of 2025 and noted that their departures had been quite unexpected.

Delay Rumors Surface Amid Management Changes

Shortly thereafter, a report by Bloomberg brought unsettling news: Subnautica 2 was now expected to be delayed until 2026. This timing raised eyebrows, especially as the studio was approaching revenue targets that would have constituted a $250 million bonus stipulated in the acquisition agreement with Krafton made in 2021. Reports indicated that the team felt these targets were now “unattainable, ”with speculation that the delay was a strategy by Krafton to sidestep the substantial financial obligation.

https://www.youtube.com/watch?v=oK5Nr1VtJ9QVideo can’t be loaded because JavaScript is disabled: Subnautica 2 – "Take a Deep Breath" (Gameplay Reveal Teaser) (https://www.youtube.com/watch?v=oK5Nr1VtJ9Q)

Krafton Responds: Financial Motives Denied

In response to the rumblings from Bloomberg, Krafton refuted claims linking the delay to financial motives, emphasizing that the decision stemmed from insights gained during an internal playtest. Nonetheless, Papoutsis reportedly communicated to the team that Krafton’s leadership felt Subnautica 2 required more robust content before an early access launch could proceed.

Blame Game: Crafting a New Narrative

The plot thickened further when Krafton released a pronounced statement directing blame at Cleveland, McGuire, and Gill. The company accused the founders of “abandoning”their responsibilities and claimed that their actions were directly responsible for Subnautica 2‘s delays. Krafton described their removal as “necessary”to realign the project’s direction.

Krafton claimed that a staggering 90% of the impending $250 million bonus was allocated for the three founders, under the expectation they would provide necessary leadership during development. Allegations were made that after the downturn of another project, Moonbreaker, Cleveland was urged to refocus on Subnautica 2, yet chose to pursue a personal project instead.

The Fallout: Consequences for the Development Team

Expressing disappointment, Krafton indicated that the lack of core leadership led to confusion and continued project delays. They acknowledged that the current version of the game fell short of content expectations, ultimately betraying the trust placed in the former leaders by their dedicated fans.

Amid these allegations, Krafton reassured the remaining Unknown Worlds employees of their commitment to fair compensation in light of their ongoing efforts to bring Subnautica 2 to fruition. They reiterated promises concerning the rewards outlined in previous agreements.

In the Midst of Turmoil: Conflicting Reports Unfold

Adding to the unfolding drama, Bloomberg’s Jason Schreier reported that documentation concerning the bonus structure revealed a distribution plan allocating 10% of the total—approximately $25 million—for around 40 Unknown Worlds staff members, who were to receive varying amounts largely in the six-figure range. Meanwhile, it was also noted that the founders had intended to share portions of their bonuses with other employees.

Update on the Subnautica story: today I received more documentation on the $250m earnout. Ten percent of that, or up to $25m, was due to be paid to about 40 Unknown Worlds staff (each receiving different amounts, mostly six figures).Leadership had also said they’d give parts to other employees.

— Jason Schreier (@jasonschreier.bsky.social) 2025-07-10T14:36:14.078Z

This situation has escalated into one of the most compelling stories of the year within the gaming industry, and speculation abounds that it could lead to legal ramifications. Further updates will be provided as this narrative continues to develop.

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