Amid an increasingly bitter row over a $250 million bonus, Krafton has now chosen to confirm a leaked Subnautica 2 development document purportedly criticizing the highly-anticipated sequel is, in fact, real.
But first, some context. Krafton acquired Unknown Worlds in October 2021 and at the time, said the Subnautica studio would continue to operate as an independent outfit. Last week, however, former Striking Distance CEO, Steve Papoutsis, joined Subnautica 2 developer Unknown Worlds as CEO. The shock announcement confirmed that the previous leadership team — Ted Gill, Charlie Cleveland, and Max McGuire — were replaced “effective immediately.” In a subsequent statement, co-founder Cleveland responded to what he called the “shock” decision to replace the leadership team, saying that “after all these years, to find that I’m no longer able to work at the company I started stings.” The statement also intimated that while the former leadership team considered the game ready for early access release, Krafton did not.
Then, last week, reports came to light that Subnautica 2 had been delayed to 2026 just months before Krafton was due to pay a $250 million bonus to the development team. Bloomberg said the delay was “against the wishes of the studio’s former leadership,” and that the $250 million bonus would have kicked in if Unknown Worlds hit certain revenue targets by the end of 2025. Now, without Subnautica 2 coming out this year, that bonus wouldn’t be paid out.
In a statement to IGN, Krafton insisted the decision had nothing to do with “any contractual or financial considerations.” Instead, Krafton claimed, the delay was about responding to feedback from playtests, and delay talks were already under discussion before Cleveland, McGuire, and Gill were outed. Shortly after this statement, the former leadership team revealed they were filing a lawsuit against Krafton.
And now the drama continues, with the leak of an internal review document that shares a less-than-stellar mid-cycle review. Rather than deny the leak, however, Krafton has authenticated it, saying: “Given these circumstances, Krafton has determined that transparent communication is necessary and has chosen to confirm the authenticity of the document.”
The leaked images themselves show two pages of a development review, and appear to be photographs of a PC monitor. They show the disconnect between where Krafton expected development to be versus the as-is position. While we don’t know who or which company authored the report, it’s clearly critical of Unknown Worlds, recommending Subnautica 2 should “launch with an MVP-level build that allows players to experience the core loop at a high level of quality,” but adding that, as it currently stood, the game “lacks the level of polish and market impact required to drive IP growth and expansion.”
“It is recommended to enhance the content volume and level of polish before launching so that it can appeal to a broader market from the [early access] release stage,” the report says. “While the game includes a variety of content, it currently lacks the freshness and volume expected of a sequel.
“In addition, it falls short of meeting the high expectations of the OWSC and the Asian market.”
It is currently unclear how the leaked document began circulating publicly online.
“Krafton is issuing the following statement in response to growing speculation surrounding the development of Subnautica 2,” Krafton said in a statement to Eurogamer. “This statement aims to offer clarity and context regarding the current situation.
“The document that has been circulating on social media and reported by various outlets is indeed part of an internal milestone review conducted as part of the Subnautica 2 project. Krafton has confirmed that portions of it have been leaked and are now being widely shared across online platforms and within the fan community. Krafton recognises the confusion this has caused.
“Given these circumstances, Krafton has determined that transparent communication is necessary and has chosen to confirm the authenticity of the document,” the publisher added. “Krafton believes that minimising speculation and ensuring accurate communication with players must take precedence.
“Milestone reviews are conducted regularly in collaboration with Krafton’s creative studios across all projects. These reviews help assess development progress, define clear objectives, and ensure that each project aligns with Krafton’s standards in both creativity and quality. This process is central to Krafton’s commitment to delivering polished, high-quality games at the right time.
“Krafton will continue working closely with Unknown Worlds to ensure that Subnautica 2 meets the expectations of players who have supported the franchise over the years,” the statement concluded.
Vikki Blake is a reporter for IGN, as well as a critic, columnist, and consultant with 15+ years experience working with some of the world’s biggest gaming sites and publications. She’s also a Guardian, Spartan, Silent Hillian, Legend, and perpetually High Chaos. Find her at BlueSky.
