Subnautica 2 faced with leadership change, major delay, lawsuit, and leaks

The unfolding drama has continued this week.
subnautica 2 game

Unknown Worlds’ Subnautica 2 isn’t in a good spot. Weeks ago, it was a highly-anticipated adventure sequel with plenty of audience excitement about its incoming early access launch. Then, cracks began to appear in the facade, as the game’s publisher Krafton announced the sudden departure of Unknown Worlds leaders Ted Gill, Charlie Cleveland, and Max McGuire.

They were replaced by Steve Papoutsis, CEO of Striking Distance Studios, with the blog announcement stating he would ‘bring renewed energy and momentum to delivering the long-anticipated Subnautica 2 experience to fans.’

It was claimed that Krafton had ‘sought to keep the Unknown Worlds’ co-founders and original creators of the Subnautica series involved in the game’s development,’ but it was not clear why the change was made, at the time, beyond references to making ‘the best possible game’ and ‘delivering the right game at the right time.’

Subsequently, the game’s early access release date was changed from 2025 to 2026. Per Krafton, speaking to Eurogamer, the decision was inspired by ‘valuable feedback’ from the game’s community that ‘reinforced [its] confidence in the game’s direction’ while highlighting ‘a few areas that could benefit from further refinement before release.’

Subnautica 2 delay causes challenge over studio payout

Krafton further said the decision was ‘based solely on [its] commitment to quality and to delivering the best possible experience for players’ and not ‘influenced by any contractual or financial considerations.’ This statement was delivered following media reports that the delay would prevent a USD $250 million bonus from being paid to the game’s development team.

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‘By delaying Subnautica 2 into next year, the company is unlikely to hit [certain revenue] targets and therefore the employees may not be eligible for the payout,’ sources speaking to Bloomberg claimed.

Responding to these reports, Krafton alleged 90% of the payout would’ve gone to Unknown Worlds’ senior leadership. It also accused these leaders of ‘betraying’ fans and abandoning responsibilities in a statement alleging ‘the absence of core leadership has resulted in repeated confusion in direction and significant delays in the overall project schedule.’

Subnautica 2 was originally planned for an Early Access launch in early 2024, but the timeline has since been significantly delayed,’ the publisher claimed. ‘Krafton made multiple requests to Charlie and Max to resume their roles as Game Director and Technical Director, respectively, but both declined to do so.’

‘We are deeply disappointed by the former leadership’s conduct, and above all, we feel a profound sense of betrayal by their failure to honour the trust placed in them by our fans … To uphold our commitment to provide you with the best possible gaming experience, we made the difficult yet necessary decision to change the executive leadership.’

Krafton faces lawsuit from developers

The next step in the saga arrived in the form of a lawsuit, with news of this move shared by Cleveland, via Reddit. In a statement, the developer labelled the current situation ‘explosive and surreal’ while confirming a lawsuit is in play, and details will eventually become public.

‘Suing a multi-billion dollar company in a painful, public and possibly protracted way was certainly not on my bucket list,’ Cleveland said. ‘But this needs to be made right. Subnautica has been my life’s work and I would never willingly abandon it or the amazing team that has poured their hearts into it.’

He further claimed the payout was never intended solely for the studio’s leadership. ‘Historically we’ve always shared our profits with the team and did the same when we sold the studio,’ Cleveland said. ‘ You can be damned sure we’ll continue with the earnout/bonus as well. They deserve it for all their incredible work trying to get this great game into your hands.’

Subnautica 2 development documents leak

Days after this lawsuit was announced, there was another twist in the saga, as leaked documents showing the timeline of Subnautica 2‘s development, and requests for a delay, were shared with media. While the origin of the documents is unknown, Krafton later issued a rare public confirmation of legitimacy, to minimise speculation and ensure ‘accurate communication with players.’

‘Milestone reviews are conducted regularly in collaboration with Krafton’s creative studios across all projects,’ Krafton said. ‘These reviews help assess development progress, define clear objectives, and ensure that each project aligns with Krafton’s standards in both creativity and quality. This process is central to Krafton’s commitment to delivering polished, high-quality games at the right time.’

There’s likely much more to come in this dispute, but we’ll all have to stay patient to see what eventuates. In the meantime, keen players are grappling with what this means for Subnautica 2, with some even calling for a boycott of the upcoming game.

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Leah J. Williams is a gaming and entertainment journalist who spends her time falling in love with media of all qualities. One of her favourite films is The Mummy (2017), and one of her favourite games is The Urbz for Nintendo DS. Take this information as you will.