Ex-Subnautica 2 execs x Krafton controversy explained 

The upcoming sci-fi survival crafting game Subnautica 2 has entered rough waters, as its Early Access launch has officially been delayed to 2026. Making matters worse, the co-founders of Unknown Worlds Entertainment (the game's development studio) have butted heads with Krafton (the publisher) after the former sued the latter over internal conflicts.

So, what's going on, and what does it mean for both the game and the fans? Read on to learn more.

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Subnautica 2 developer and Krafton controversy explained

The chief staff who have been removed from the studio are suing the publisher (Image via Krafton)

The controversy began with rumors last week that key staff from the Subnautica 2 development team at Unknown Worlds Entertainment had left. This was confirmed by the publisher, Krafton, in an official press release, highlighting the arrival of the new CEO, Steve Papoutsis; in contrast, past key staff, namely Ted Gill, Charlie Cleveland, and Max McGuire, have been removed from the development studio..

Among them, Charlie Cleveland publicly touched on this matter, relaying his shock over losing the position and reassuring fans that development on Subnautica 2 is still on track despite the delay. The latter statement was also reflected in a community letter by the developers in light of the new CEO's arrival.

Speaking on Reddit, Cleveland claimed that Subnautica 2 is ready for a 2025 Early Access release, but this contrasts with the officially cited reason that the delay was because the Early Access launch build needed a little more time in the oven. The PR statement from Unknown Worlds Entertainment reads:

"We got some great feedback about Subnautica 2 during those playtests. The community was responding well to the environment, creatures, and story, and felt positive about the general direction of the game. It gave us a great indication that we’re swimming in the right direction."

The letter continues:

"It also provided some insight that there are a few areas where we needed to improve before launching the first version of Subnautica 2 to the world. Our community is at the heart of how we develop, so we want to give ourselves a little extra time to respond to more of that feedback before releasing the game into Early Access. With that in mind, we’ve made the decision to delay Subnautica 2’s Early Access release to 2026."

Rolling the snowball further, Bloomberg reported that insider sources who spoke to staff at Unknown Worlds Entertainment have claimed that Krafton made the decision to delay the game to avoid paying the studio executives bonuses of USD 250 million.

Essentially, if the game had met its Early Access milestone for 2025, the three executives would have received a significant paycheck bonus. However, since it had not, as per Krafton, the game was delayed, and the bonus was taken off the table.

Krafton reiterated as much in an official statement following this murmur, suggesting that they were disappointed with the management's performance:

"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."

Krafton claims Cleveland avoided his responsibilities in contributing to Subnautica 2's development and that the current build of the game is not up to snuff:

"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."

Co-op will be a key feature of the game (Image via Krafton)

A few days ago, Cleveland shared that he and the others are filing a lawsuit against Krafton in light of this occurrence, as none of it is true. Speaking in a Reddit post, here's what he said:

"We’ve now filed a lawsuit against Krafton: the details should eventually become (at least mostly) public - you all deserve the full story. Suing a multi-billion dollar company in a painful, public and possibly protracted way was certainly not on my bucket list. But this needs to be made right. Subnautica has been my life’s work and I would never willingly abandon it or the amazing team that has poured their hearts into it."

He continues, addressing the claim that the USD 250 million bonus would only be given to the heads, with the rest of the team left hanging:

"As for the earnout, the idea that Max, Ted and I wanted to keep it all for ourselves is totally untrue. I’m in this industry because I love it, not for riches. Historically we’ve always shared our profits with the team and did the same when we sold the studio. You can be damned sure we’ll continue with the earnout/bonus as well. They deserve it for all their incredible work trying to get this great game into your hands."

As it stands now, this turn of events has the Subnautica community in an uproar. With the last series entry released in 2021, this upcoming sequel was set to be one of the most eagerly anticipated games of 2025, but that will not be possible anymore due to the delay.

The outcome of this internal conflict in the long run remains to be seen, despite Krafton's reassurances that development is unaffected. That said, a lot of players on the internet stand by the ex-staff's side and are seemingly aiming to boycott Subnautica 2 when it launches in Early Access in 2026. Others think Krafton's story also makes sense, and as such, they are awaiting more details on the matter.