The ongoing drama around Subnautica 2's delay and its team's upheaval continues, with the company Krafton issuing a lengthy public statement today accusing the studio's leaders of having "abandoned responsibilities" on the game, alleging they focused on personal projects rather than fulfilling their contracted roles and suggesting the game's delay is their fault.
In the published statement sent to press, which we've reprinted in full below, Krafton claims it made "multiple requests" to Unknown Worlds founders Charlie Cleveland and Max McGuire to resume their responsibilities as game director and technical director respectively, but claims they both declined. "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," the statement reads. "KRAFTON believes that the absence of core leadership has resulted in repeated confusion in direction and significant delays in the overall project schedule."
Krafton also makes reference to a reported $250 million bonus that was promised to the development team, which would have paid out just a few months from now if it hit revenue targets. Per Krafton, 90% of this bonus was intended to go directly to Cleveland, McGuire, and former CEO Ted Gill prior to their removal from the project.
The statement concludes with Krafton promising "fair and equitable compensation for all remaining Unknown Worlds employees...and we reaffirm our commitment to provide the rewards they were promised."
The full content of the statement is as follows:
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.
Subnautica 2's entire leadership team was replaced last week with former Striking Distance CEO Steve Papoutsis by owner Krafton, and the game was delayed to 2026. The replacement came as a "shock" to Cleveland, who claimed in a Reddit post shortly after his removal that Subnautica 2 was "ready for early release", that the decision was "in Krafton's hands," and saying the decision to remove him and the other leaders "stings."
This was followed by a Bloomberg report that alleged this decision was made just before the $250 million bonus was scheduled to be paid out to the team, with staff expecting bonuses ranging from hundreds of thousands of dollars to seven figures that they were now concerned they would not see. In a statement to IGN at the time, Krafton claimed the delay was a response to playtester feedback, and had nothing to do with "any contractual or financial considerations." In response to the removal of the three members of leadership and concerns about the denial of promised bonuses to staff, fans have begun organizing boycotts of the game on social media.
Rebekah Valentine is a senior reporter for IGN. You can find her posting on BlueSky @duckvalentine.bsky.social. Got a story tip? Send it to rvalentine@ign.com.
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