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Reading: Krafton accuses former Subnautica 2 bosses of abandoning the game in surprising new statement: ‘We feel a profound sense of betrayal by their failure to honor the trust placed in them’
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Tech Journal Now > Games > Krafton accuses former Subnautica 2 bosses of abandoning the game in surprising new statement: ‘We feel a profound sense of betrayal by their failure to honor the trust placed in them’
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Krafton accuses former Subnautica 2 bosses of abandoning the game in surprising new statement: ‘We feel a profound sense of betrayal by their failure to honor the trust placed in them’

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Last updated: July 10, 2025 10:32 pm
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The cold war of words between Subnautica 2 publisher Krafton and the recently ousted leadership of developer Unknown Worlds got very hot today as Krafton issued a statement accusing the former studio heads of effectively abandoning the project, resulting in “repeated confusion in direction and significant delays in the overall project schedule.”

Krafton, best known as the publisher of PUBG, acquired Subnautica developer Unknown Worlds in 2021 for $500 million. In addition to that, Krafton put another $250 million in “earn-out compensation” on the table—essentially bonuses for achieving certain targets or milestones—90% of which were allocated to Subnautica designer and director Charlie Cleveland, CEO Ted Gill, and co-founder Max McGuire, the studio heads who were fired earlier this month, “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,” Krafton wrote. “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.


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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 said Subnautica 2 development has suffered from “repeated confusion in direction and significant delays in the overall project schedule,” which it pinned on an “absence of core leadership” at Unknown Worlds. It also says the current version of the game “falls short of content volume,” which is what forced the recently confirmed delay into 2026.

“We are deeply disappointed by the former leadership’s conduct,” Krafton wrote, “and above all, we feel a profound sense of betrayal by their failure to honor the trust placed in them by our fans.”

To Our 12 Million Fellow Subnauts,— Inevitable Leadership Change Driven by Project Abandonment–Despite Holding 90% of Earnout for ThemselvesFirst 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.

(Image credit: Krafton)

That’s a shockingly harsh thing to say in a corporate press release, and effectively confirms serious behind-the-scenes beef over Subnautica 2 that’s previously only been hinted at. Krafton said when the Unknown Worlds bosses were shown the door that incoming CEO Steve Papoutsis, formerly the head of Callisto Protocol developer Striking Distance Studios, would “bring renewed energy and momentum” to the project; it later promised that “the team that has been working on the game day-to-day over the last few years remains completely unchanged,” obliquely suggesting that Cleveland, Gill, and McGuire had not been working on it regularly.

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Shortly thereafter, Cleveland defended the work on Subnautica 2, saying that the game in its current state “is ready for early access release.” Nonetheless, a delay into 2026 was announced a few days later; there was some speculation that Krafton pushed the release in order to avoid that $250 million payout, but the publisher said the decision “was not influenced by any contractual or financial considerations.”

Krafton also seemed to promise some sort of makeup for that missed bonus payout in today’s statement, saying it 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.”

What exactly that works out to remains to be seen: A Bloomberg report said the dismissed studio leadership had planned to share the full $250 million bonus with all of the estimated 100 employees at Unknown Worlds, which could mean a massive reduction in payouts if Krafton only allocates the 10% they were originally due to get. A Krafton spokesperson said further details on that will be revealed in the future.

The statement has touched off some back-and-forth on the Subnautica subreddit, where some are inclined to accept Krafton’s explanation (Subnautica 2 has been a long time coming, after all) and others standing behind the former Unknown Worlds leaders who headed up the first Subnautica, which was nothing short of brilliant. For now, though, only two things are certain: Bad blood is boiling, and it’s not likely to be over anytime soon.

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