Amid an escalating dispute over a $250 million performance bonus, Krafton has confirmed the authenticity of a leaked development review for Subnautica 2 that is highly critical of the sequel's progress.
To provide context: Krafton acquired Unknown Worlds in October 2021, initially pledging that the Subnautica studio would retain its independent operational structure. However, last week’s appointment of former Striking Distance CEO Steve Papoutsis as the new CEO of Unknown Worlds came with the abrupt removal of the previous leadership team—Ted Gill, Charlie Cleveland, and Max McGuire—effective immediately. In a later statement, co-founder Cleveland described the leadership change as a “shock,” noting that "after all these years, being unable to continue working at the company I founded is deeply painful." He also suggested that while the former leadership considered the game ready for early access, Krafton disagreed.
Reports soon emerged that Subnautica 2 had been delayed until 2026, just months before a $250 million developer bonus was scheduled to be paid out. According to Bloomberg, the delay occurred “against the wishes of the studio’s former leadership,” and the bonus—contingent on revenue targets being met by the end of 2025—will now not be awarded.
In a statement to IGN, Krafton maintained that the decision was unrelated to “any contractual or financial considerations,” and instead reflected feedback from playtests, with discussions about a delay beginning prior to the leadership change. Shortly afterward, the former leadership team announced they were filing a lawsuit against Krafton.
The situation deepened when an internal review document surfaced, presenting a critical mid-cycle assessment of the game. Rather than disputing its authenticity, Krafton confirmed the document was legitimate, stating: "Given these circumstances, Krafton has determined that transparent communication is necessary and has chosen to confirm the authenticity of the document."
The leaked images, which appear to be photographs of two pages from a development review displayed on a monitor, highlight discrepancies between Krafton’s development expectations and the game's current state. Although the report's author remains unknown, it is sharply critical of Unknown Worlds, suggesting that Subnautica 2 should "launch with an MVP-level build that allows players to experience the core loop at a high level of quality." However, it notes the current build "lacks the level of polish and market impact required to drive IP growth and expansion."
The document recommends: "It is advised to enhance both the quantity and quality of content before launch, ensuring the game appeals to a wider audience from the early access stage. While the game already includes varied content, it currently lacks the novelty and volume expected from a sequel."
It further states: "Additionally, it fails to meet the high expectations set by the OWSC and the Asian market."
The origin of the leaked document remains unclear.
A leak from a credible source regarding the milestone review of Subnautica 2
byu/Complete_Bread_4924 inSubnautica_2
In a statement provided to Eurogamer, Krafton stated: "Krafton is issuing the following statement in response to growing speculation surrounding the development of Subnautica 2. This statement aims to offer clarity and context regarding the current situation.
"The document circulating on social media and reported by various media outlets is part of an internal milestone review for the Subnautica 2 project. Krafton confirms that portions were leaked and are now widely shared across online platforms and fan communities. We recognize the confusion this has caused.
"In light of these circumstances, Krafton believes transparent communication is essential and has therefore verified the document’s authenticity," the publisher continued. "We consider it a priority to minimize speculation and maintain clear, accurate communication with players.
"Milestone reviews are routine collaborative processes between Krafton and its creative studios across all projects. These reviews track development progress, set clear goals, and ensure alignment with Krafton’s creative and quality benchmarks. This practice reflects our commitment to releasing polished, high-quality games at the appropriate time.
"Krafton will continue collaborating closely with Unknown Worlds to ensure Subnautica 2 meets the expectations of the players who have supported the franchise over the years," the statement concluded.
