Krafton slams ex-Subnautica 2 execs and claims it'll give developers their ‘promised' reward

The Verge

10-07-2025

Subnautica 2 has been at the center of a contentious debate between leadership at its developer Unknown Worlds and the game's publisher, Krafton Games. At stake is a $250 million payout, promised to Unknown Worlds if the studio hit certain revenue targets by the end of this year. But a company shakeup and the subsequent delay of Subnautica 2 has rocked the studio and potentially imperiled the promised payout.
On July 2nd, Krafton announced that Steve Papoutsis, CEO of The Callisto Protocol developer Striking Distance Studios would be taking over as the CEO of Unknown Worlds, replacing the current leadership of Ted Gill, Charlie Cleveland, and Max McGuire with immediate effect.
The following week, on July 9th, Unknown Worlds announced that early access for Subnautica 2 would be delayed to 2026. According to the announcement, Subnautica 2 was in good shape, but closed testing revealed 'some insight that there are a few areas where we needed to improve before launching the first version of Subnautica 2 to the world.'
That same day, Bloomberg's Jason Schreier reported that this delay was against the wishes of Unknown Worlds' former leadership and that there were serious financial implications for this delay. According to Schreier's report, when Krafton purchased Unknown Worlds, in 2021 it promised a $250 million bonus to the studio if it hit revenue targets by the end of 2025. Schreier's reporting also indicated that the bonus was planned to be shared among the studio's roughly 100 employees with some being promised bonuses in the seven figures.
With Subnautica 2's delay, those revenue targets will likely not be hit, and those bonuses not paid out. In a statement to Bloomberg, Krafton said the delay was only to improve Subnautica 2's quality, and it's possible to envision a situation where Krafton delayed the game in order to get out of paying out the bonus.
However, Krafton has issued a new statement that seemingly throws cold water over this interpretation. The statement says that Krafton had 'allocated approximately 90% of the up to $250 million earn-out compensation to the three former executives' with the 'expectation' that the executives would 'demonstrate leadership and active involvement in the development of Subnautica 2.' The statement then accuses the ousted leadership of essentially abandoning development on the game while affirming 'fair and equitable compensation for all remaining Unknown Worlds employees.'
Here's the statement in full, which you can also see on Krafton's website.
To Our 12 Million Fellow Subnauts,
— Inevitable Leadership Change Driven by Project Abandonment–Despite Holding 90% of Earnout for Themselves
First and foremost, we sincerely thank you for your continued support, passion, and unwavering dedication to Subnautica. We wish to provide clarity on the recent leadership changes at Unknown Worlds, a creative studio under KRAFTON.
Background of Leadership Change
KRAFTON deeply values Subnautica's unique creativity and immersive world-building. To provide fans with even better gaming experiences, we acquired Unknown Worlds, fully committed to supporting Subnautica's future success. We collaborated closely with the studio's leadership, who were central to the creation of the original Subnautica, to foster the optimal environment for a successful Subnautica 2.
Specifically, in addition to the initial $500 million purchase price, we allocated approximately 90% of the up to $250 million earn-out compensation to the three former executives, with the expectation that they would demonstrate leadership and active involvement in the development of Subnautica 2.
However, regrettably, the former leadership abandoned the responsibilities entrusted to them. Subnautica 2 was originally planned for an Early Access launch in early 2024, but the timeline has since been significantly delayed. 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. In particular, following the failure of Moonbreaker, KRAFTON asked Charlie to devote himself to the development of Subnautica 2. However, instead of participating in the game development, he chose to focus on a personal film project.
KRAFTON believes that the absence of core leadership has resulted in repeated confusion in direction and significant delays in the overall project schedule.The current Early Access version also falls short in terms of content volume.We are deeply disappointed by the former leadership's conduct, and above all, we feel a profound sense of betrayal by their failure to honor the trust placed in them by our fans.
KRAFTON's Full Support for the Dedicated Development Team
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. Subnautica 2 has been and continues to be actively developed by a dedicated core team who share genuine passion, accountability, and commitment to the game. We deeply respect their expertise and creativity and will continue to provide full and unwavering support, enabling them to focus solely on delivering the exceptional game you deserve.
KRAFTON's Commitment to its Promises in Rewarding Employees
Additionally, KRAFTON has committed to fair and equitable compensation for all remaining Unknown Worlds employees who have continuously and tirelessly contributed to Subnautica 2's development. We believe that the dedication and effort of this team are at the very heart of Subnautica's ongoing evolution, and we reaffirm our commitment to provide the rewards they were promised.
Fans will always remain at the center of every decision we make at KRAFTON. Moving forward, we promise transparent communication and continued efforts to sustainably develop and expand the beloved Subnautica universe.
Honoring your trust and expectations is a core tenet at KRAFTON. We are committed to repaying your patience with an even more refined and exceptional gaming experience.