The ongoing situation surrounding Subnautica 2's delay and the studio's internal turmoil continues to develop. Today, Krafton released a detailed public statement, accusing the game's leadership of neglecting their duties. The company alleges that key figures prioritized personal endeavors over their contractual commitments, directly contributing to the project's postponement.
In a statement distributed to the press and reproduced in full below, Krafton states it made "repeated appeals" to Unknown Worlds founders Charlie Cleveland and Max McGuire, asking them to return to their positions as game director and technical director. The company claims both individuals refused. The statement reads, "Specifically, after the underperformance of Moonbreaker, KRAFTON urged Charlie to fully commit to Subnautica 2's development. However, he opted to concentrate on a personal film project rather than contribute to the game." It continues, "KRAFTON is of the view that the lack of core leadership has caused persistent directional ambiguity and substantial setbacks to the project's overall timeline."
Krafton also mentions a previously reported $250 million bonus earmarked for the development team, which was slated for distribution in just a few months had certain revenue goals been met. According to Krafton, 90% of this bonus was allocated for Cleveland, McGuire, and former CEO Ted Gill before they were removed from the project.
The statement ends with Krafton's pledge to ensure "fair and equitable compensation for all remaining Unknown Worlds employees...and we reaffirm our commitment to provide the rewards they were promised."
The complete statement is provided below:
To Our 12 Million Fellow Subnauts,
— Necessary Leadership Transition Following Project Abandonment–Despite Allocating 90% of Earnout to Themselves
First and foremost, we extend our sincere gratitude for your ongoing support, passion, and steadfast dedication to the Subnautica franchise. We aim to clarify the recent leadership transitions at Unknown Worlds, a creative studio within the KRAFTON family.
Context for the Leadership Change
KRAFTON holds Subnautica's distinctive creativity and immersive world in the highest regard. To deliver even more exceptional gaming experiences to our fans, we acquired Unknown Worlds, fully investing in the future success of Subnautica. We worked in close partnership with the studio's leadership, the original architects of Subnautica, to cultivate the ideal conditions for a successful Subnautica 2.
Notably, beyond the initial acquisition price of $500 million, we designated approximately 90% of the potential $250 million earn-out compensation to the three former executives. This was done with the expectation that they would provide strong leadership and active involvement in the development of Subnautica 2.
Unfortunately, the former leadership failed to uphold the responsibilities entrusted to them. Subnautica 2 was initially scheduled for an Early Access release in early 2024, but this timeline has experienced considerable delays. KRAFTON issued multiple requests to Charlie and Max to return to their respective roles as Game Director and Technical Director, both of which were declined. Specifically, following Moonbreaker's disappointing performance, KRAFTON requested Charlie's full dedication to Subnautica 2. Instead of engaging with the game's development, he elected to pursue a personal film project.
KRAFTON believes the loss of core leadership has led to recurring directional uncertainty and major delays across the project schedule.
The current Early Access build also lacks sufficient content volume.
We are profoundly disappointed by the conduct of the former leadership, and above all, we feel a deep sense of betrayal due to their failure to honor the trust bestowed upon them by our community.
KRAFTON’s Unwavering Support for the Committed Development Team
To honor our promise of delivering the finest gaming experience, we made a challenging yet essential decision to change the executive leadership. Subnautica 2 is, and has always been, actively developed by a devoted core team that possesses genuine passion, accountability, and commitment to the game. We hold their expertise and creativity in the highest esteem and will continue to offer our full and steadfast support, empowering them to focus entirely on creating the outstanding game you expect.
KRAFTON’s Dedication to Fulfilling Employee Compensation Promises
Furthermore, KRAFTON is committed to ensuring fair and equitable compensation for all remaining Unknown Worlds employees who have tirelessly contributed to Subnautica 2's development. We recognize that this team's dedication and hard work are fundamental to Subnautica's continued growth, and we reaffirm our pledge to deliver the rewards they were promised.
Our fans will always be the focal point of every decision we make at KRAFTON. Going forward, we pledge to maintain transparent communication and continue our efforts to sustainably develop and expand the beloved Subnautica universe.
Upholding your trust and meeting your expectations is a cornerstone of KRAFTON's values. We are dedicated to rewarding your patience with a more polished and exceptional gaming experience.
Last week, Krafton replaced Subnautica 2's entire leadership team, appointing former Striking Distance CEO Steve Papoutsis, and delayed the game's release to 2026. This change came as a "shock" to Cleveland, who stated in a Reddit post shortly after his removal that Subnautica 2 was "ready for early access," the decision was "in Krafton's hands," and expressed that the decision to oust him and other leaders "stings."
Subsequently, a Bloomberg report suggested this decision occurred just before the scheduled payout of the $250 million bonus to the team. Staff anticipated bonuses ranging from hundreds of thousands to millions of dollars and are now worried they may not receive them. In a statement to IGN at the time, Krafton asserted the delay was based on feedback from playtesters and was unrelated to "any contractual or financial considerations." In reaction to the removal of the three leaders and anxieties over denied staff bonuses, fans have started organizing social media campaigns to boycott the game.
