Krafton Delays Subnautica 2 Over Leadership Issues

The ongoing controversy surrounding Subnautica 2's delay and studio turmoil continues as Krafton releases a detailed statement today accusing Unknown Worlds' leadership of neglecting their duties. The company alleges the founders prioritized personal projects over contractual obligations, directly contributing to the game's postponement.

In its official press statement reprinted below, Krafton claims it repeatedly asked Unknown Worlds co-founders Charlie Cleveland and Max McGuire to resume their roles as game director and technical director for Subnautica 2, but both allegedly refused. "Following Moonbreaker's commercial disappointment, we specifically requested Charlie's full commitment to Subnautica 2's development. Instead, he chose to pursue an independent film project," reads Krafton's accusation. "We maintain that this leadership vacuum caused significant directional confusion and substantial project delays."

The statement references a previously reported $250 million performance bonus - 90% of which was reportedly earmarked for Cleveland, McGuire, and ex-CEO Ted Gill before their removal. Had revenue targets been met, this bonus would have been distributed within months.

Krafton concludes by assuring fair compensation for remaining Unknown Worlds staff, stating: "We remain committed to honoring all promised rewards for our development team."

Official Statement Regarding Unknown Worlds Leadership Changes

To Our Subnautica Community,

We appreciate your continued passion for Subnautica and wish to address recent executive changes at our subsidiary studio Unknown Worlds.

Circumstances Leading to Leadership Transition

Krafton wholeheartedly supported Unknown Worlds following acquisition, including substantial financial incentives tied to Subnautica 2's success. Of the $250 million potential bonus, approximately 90% was allocated to three key executives predicated on their active involvement.

Unfortunately, these individuals ultimately withdrew from critical development responsibilities. Despite our repeated requests for Charlie Cleveland and Max McGuire to resume their directorial roles, both declined participation. Particularly concerning was Charlie's decision to prioritize personal creative pursuits following Moonbreaker's underperformance.

We believe these leadership absences fundamentally compromised development timelines and creative direction. The current Early Access build reflects these challenges with noticeably scaled-back content.

Our Commitment to the Development Team

After careful consideration, we implemented necessary leadership changes to refocus the project. A passionate core team continues developing Subnautica 2 with our full operational support.

Employee Compensation Assurance

All remaining team members will receive fair compensation recognizing their vital contributions. We remain steadfast in fulfilling our commitments to these dedicated developers.

Player expectations guide every decision at Krafton. We pledge continued transparency as we evolve the Subnautica universe.

This follows last week's abrupt leadership overhaul installing former Striking Distance CEO Steve Papoutsis alongside Subnautica 2's delay to 2026. Cleveland publicly expressed surprise at his removal, claiming the game was "ready for early release" and that Krafton controlled final decisions.

Bloomberg later reported leadership changes coincided with the impending bonus payout window, leaving staff concerned about lost earnings ranging from six to seven figures. Krafton previously told IGN these decisions reflected playtester feedback rather than financial considerations.

The controversy has sparked fan-organized social media campaigns pledging boycott actions against the upcoming installment.