Subnautica 2 fans have found themselves in turbulent waters following a chaotic series of events that kicked off earlier this month. Yesterday’s announcement by Krafton, the game’s publisher, that Subnautica 2 will be delayed until 2026 has only intensified a growing controversy involving leadership firings, allegations of betrayal, and now, a lawsuit filed by Unknown Worlds’ former leadership.
The saga began on July 2 when Krafton unexpectedly ousted Unknown Worlds co-founders Charlie Cleveland, Max McGuire, and CEO Ted Gill. Krafton swiftly appointed Steve Papoutsis, previously of Striking Distance Studios, as CEO. Krafton claimed the shakeup was necessary due to the former executives’ “abandonment” of their roles. Specifically, Krafton accused Cleveland of prioritizing a personal film project over Subnautica 2, adding that he declined multiple requests to return as Game Director, while McGuire similarly refused to resume his Technical Director responsibilities.
“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 said in their July 2 statement.
In response, Cleveland expressed shock over the abrupt removal. On social media, he asserted that Subnautica 2 was “ready for early access release,” hinting that Krafton’s motives might not be entirely transparent.
Then came Krafton’s official delay announcement on July 9. While Krafton explained the decision as a quality measure intended to address “insights” gained from playtests—promising richer biomes and improved mechanics—it was impossible to ignore the timing. With the delay into 2026, a planned $250 million earn-out bonus for hitting sales milestones by the end of 2025 became unreachable. Krafton insisted, however, that financial considerations did not factor into their decision.
The controversy intensified further yesterday, July 10, when Cleveland announced on Reddit that he and his former colleagues had filed a lawsuit against Krafton. Cleveland passionately disputed Krafton’s claims, stating: “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.”
Cleveland also firmly denied Krafton’s allegation that the executive team intended to pocket the majority of the $250 million payout. “The idea that Max, Ted and I wanted to keep it all for ourselves is totally untrue,” Cleveland explained, adding, “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.”
Amidst this heated back-and-forth, the Subnautica community has erupted with anger and frustration. Thousands of fans have taken to social media and Reddit, urging others to boycott the game or remove it from their wishlists until Krafton addresses the situation transparently.
Krafton continues to maintain that the delay and leadership changes are necessary steps toward delivering the best possible gaming experience, pledging “fair and equitable compensation for all remaining Unknown Worlds employees.”
As this legal battle heats up, fans are left wondering not only when they’ll finally dive back into Subnautica’s world but also what the future holds for the beloved franchise.
