News: Subnautica 2 and the current Development Controversy
The development of
Subnautica 2
has been embroiled in significant controversy following recent events involving its developer,
Unknown Worlds and publisher Krafton.
Krafton announced the abrupt replacement of Unknown Worlds’ leadership team, including co-founders
Charlie Cleveland and Max McGuire, and CEO Ted Gill, with Steve Papoutsis, formerly of Striking
Distance Studios, as the new CEO. This shakeup coincided with the delay of Subnautica 2’s early
access release from 2025 to 2026, sparking widespread fan backlash and speculation about the motives
behind these decisions.

Krafton claims the leadership change and delay were necessary due to the former executives’
alleged failure to fulfill their roles, accusing Cleveland and McGuire of “abandoning” the
project. Specifically, Krafton stated that Cleveland focused on a personal film project and
McGuire on other endeavors, despite requests to prioritize Subnautica 2.
The publisher also cited a lack of content and polish in the game’s current build, referencing
playtest feedback that highlighted areas needing improvement. A leaked internal document allegedly
revealed that the early access build was missing key features like two biomes, a Leviathan type,
creatures, tools, six hours of narrative content, and character customization, justifying the delay
to ensure a better player experience.

Conversely, the ousted founders, particularly Cleveland, have pushed back, asserting that
Subnautica 2 was ready for early access and accusing Krafton of delaying the game to avoid
a $250 million bonus tied to 2025 revenue targets. This bonus, part of Krafton’s 2021 acquisition
of Unknown Worlds for $500 million, was reportedly allocated with 90% intended for the three
executives, leaving the remaining development team with a smaller share.
Cleveland, McGuire, and Gill have announced plans to sue Krafton, alleging wrongful termination
and breach of contract, claiming the delay was a strategic move to sidestep the payout.

The controversy has fueled significant fan outrage, with a Reddit post urging a boycott of
Subnautica 2 garnering over 50,000 upvotes and calls to remove the game from Steam wishlists,
where it ranks as the second-most anticipated title.
Fans are concerned about the game’s direction under new leadership, especially given Papoutsis’
association with the less successful The Callisto Protocol. Krafton has attempted to reassure
the community, emphasizing that the core development team remains unchanged and committed to
delivering a quality experience, with recent gameplay footage released to demonstrate progress.

The situation remains contentious, with ongoing legal action and public discourse highlighting
a rift between Krafton’s corporate decisions and the expectations of both the development team
and the Subnautica fanbase.
The outcome of the lawsuit surrounding
Subnautica 2
and the eventual release in 2026 will likely shape the franchise’s future and its reception.