Subnautica 2 Delayed: Krafton Blasts Leads for ‘Abandoning Responsibilities’

The controversy surrounding the postponement of Subnautica 2 and the disruption within its development team persists, as Krafton has released a detailed statement today. In it, Krafton accuses the studio’s leadership of neglecting their duties, claiming they prioritized personal ventures over their obligations to the game, thereby contributing to its delay.

Krafton’s statement, which has been shared with the media and is included in its entirety below, alleges that multiple pleas were made to Unknown Worlds founders Charlie Cleveland and Max McGuire to return to their roles as game director and technical director, respectively, but both allegedly refused. “Following the unsuccessful launch of Moonbreaker, we specifically requested Charlie to fully commit to Subnautica 2. Instead, he decided to work on a personal film project,” the statement details. Krafton expresses that the lack of key leadership has led to ongoing confusion and significant delays in the project’s timeline.

Krafton also mentions a reported $250 million bonus that was to be awarded to the development team in the near future, provided they met certain revenue milestones. According to Krafton, 90% of this bonus was designated for Cleveland, McGuire, and former CEO Ted Gill before they were removed from their positions.

The statement concludes with Krafton’s assurance of “fair and equitable compensation for all remaining Unknown Worlds employees…and we reaffirm our commitment to provide the rewards they were promised.”

The full text of the statement is as follows:

To Our 12 Million Fellow Subnauts,

— Inevitable Leadership Change Driven by Project Abandonment–Despite Holding 90% of Earnout for Themselves

We genuinely appreciate your ongoing support, passion, and steadfast dedication to Subnautica. We aim to clarify the recent leadership changes at Unknown Worlds, a creative studio under KRAFTON.

Background of Leadership Change

KRAFTON greatly appreciates the unique creativity and immersive world-building of Subnautica. To enhance the fan experience further, we acquired Unknown Worlds, committing fully to the future success of Subnautica. We worked closely with the studio’s original leadership, crucial to the development of the first Subnautica, to ensure the best environment for Subnautica 2’s success.

As part of our initial $500 million acquisition, we allocated about 90% of the potential $250 million in additional earn-out compensation to the three former executives, expecting them to lead and actively engage in the development of Subnautica 2.

Unfortunately, the former leadership failed to fulfill the responsibilities assigned to them. The early access launch of Subnautica 2, initially set for early 2024, has been significantly postponed. We made several requests to Charlie and Max to assume their roles as Game Director and Technical Director, which they declined. Notably, after Moonbreaker’s failure, we asked Charlie to dedicate himself to Subnautica 2. Instead, he opted to focus on his personal film project.

We believe the absence of core leadership has caused persistent direction confusion and substantial delays in the project schedule.

The current early access version also lacks sufficient content.

We are profoundly disappointed by the former leadership’s behavior and feel deeply betrayed by their failure to uphold the trust of our fans.

KRAFTON’s Full Support for the Dedicated Development Team

We decided to change the executive leadership to maintain our commitment to delivering the best gaming experience possible. Subnautica 2 is being developed by a devoted core team who share a true passion, accountability, and commitment to the game. We deeply value their expertise and creativity and will continue to offer our full and unwavering support, allowing them to focus entirely on creating the exceptional game you deserve.

KRAFTON’s Commitment to its Promises in Rewarding Employees

Additionally, KRAFTON is committed to fair and equitable compensation for all remaining Unknown Worlds employees who have worked diligently on Subnautica 2’s development. We recognize that the dedication and hard work of this team are crucial to the continued evolution of Subnautica, and we reaffirm our commitment to fulfilling the rewards they were promised.

Fans will always be at the heart of every decision we make at KRAFTON. Moving forward, we promise transparent communication and ongoing efforts to sustainably develop and expand the beloved Subnautica universe.

We are dedicated to honoring your trust and expectations and are committed to rewarding your patience with an even more refined and exceptional gaming experience.

The entire leadership team of Subnautica 2 was replaced last week with former Striking Distance CEO Steve Papoutsis by owner Krafton, and the game’s release has been postponed to 2026. This change came as a “shock” to Cleveland, who stated in a Reddit post soon after his dismissal that Subnautica 2 was “ready for early release”, that the decision lay “in Krafton’s hands,” and described the decision to remove him and the other leaders as “stinging.”