The ongoing situation surrounding the delay of *Subnautica 2* and the leadership shakeup at Unknown Worlds has taken a dramatic turn, as parent company Krafton has released an official statement addressing the matter. In it, Krafton accuses the former studio leaders—Charlie Cleveland, Max McGuire, and Ted Gill—of neglecting their responsibilities, focusing instead on personal ventures rather than fulfilling their roles in the game’s development.
According to Krafton, repeated requests were made for Cleveland and McGuire to return to their positions as Game Director and Technical Director, respectively, but both declined. The statement specifically notes that after the unsuccessful launch of *Moonbreaker*, Krafton urged Charlie Cleveland to refocus his efforts on *Subnautica 2*. Instead, he reportedly chose to pursue a personal film project, contributing to what Krafton describes as a lack of direction and repeated delays.
Krafton also revealed details about a substantial $250 million earn-out bonus tied to revenue targets, which would have been distributed to the team in the coming months. Of that amount, 90% was reportedly earmarked for Cleveland, McGuire, and Gill before their removal from the project. Despite this, Krafton emphasized its commitment to ensuring fair compensation for all remaining employees who have continued working on the game.
Full Statement from Krafton
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.
Last week, Krafton replaced the entire leadership team of Unknown Worlds, appointing Steve Papoutsis, former CEO of Striking Distance Studios, as the new head of *Subnautica 2*. The game has now been pushed back to 2026. Cleveland expressed surprise at the move in a Reddit post shortly after his removal, claiming that *Subnautica 2* was "ready for early release" and that the final decision rested with Krafton. He described the removal as painful and unexpected.
A recent Bloomberg report added fuel to the controversy, suggesting that the timing of the leadership change coincided closely with the pending $250 million bonus payout. Many employees had expected significant bonuses, some in the hundreds of thousands or even millions of dollars, and now fear those promises may go unfulfilled. At the time, Krafton told IGN that the delay was based solely on feedback from playtesters and denied any financial motivations behind the move.
In response to the leadership change and concerns over unmet bonus commitments, members of the fan community have begun organizing potential boycotts of the game across various social media platforms.
