Update (July 11, 2025): Krafton Inc. has responded to the drama, pointing blame at Unknown Worlds' leaders. Krafton Inc. went as far to suggest Unknown Worlds' leaders were pursuing "other projects" instead of working on Subnautica 2. Unknown Worlds' former founders have announced plans to sue Krafton Inc. Read below for more.
Update (July 12, 2025): Krafton Inc. has issued a statement confirming that leaked slides detailing the game's milestones are real. The "leaked" slides suggest that Subnautica 2 had missed milestones, leading to a reduction in the game's scope. This is a pretty standard part of game development in general. Read below for more. The dispute remains over whether or not Krafton Inc. acted in bad faith when ousting the game's founders, leading to bonus agreements being quashed. It seems increasingly likely that it'll have to go to court.
Update (July 15, 2025): Bloomberg is reporting that Krafton Inc. has extended the bonus period beyond 2025, through to 2026. A huge matter of controversy revolved around whether or not developers would be elligible for bonuses agreed to be paid out if the game shipped by the end of 2025. With Krafton delaying the game, a backlash ensued, but Krafton has now extended the period.
Subnautica 2 is one of the most anticipated, if not the most anticipated survival game in existence right now. And that very existence may be in jeopardy.
Yesterday, it was reported that Subnautica 2 has been delayed to 2026, amidst turmoil at developer Unknown Worlds.
The upcoming survival game pits players in oceanic alien worlds filled with gigantic beasts and sub-aquatic abyssal horrors. Players must scavenge supplies, craft submersibles, and fight to survive in unforgiving oceanic environments. The sequel aims to take everything to the next level, complete with 4-player co-op in a far larger map.
Subnautica 2 was revealed as an Xbox Game Pass title, slated for Xbox, PC, and other platforms later in 2025. But drama and turmoil at developer Unknown Worlds has the fanbase calling for boycotts, owing to the behavior of publisher Krafton.
Publisher Krafton (PUBG, Calisto Protocol) reportedly has arbitrarily delayed the game. And why? The current reporting suggests its to avoid paying out milestone bonuses to the game's developers, amounting to $25 million shared between the game's 40 core staff.
With the delay in place, Krafton would no longer need to pay out the bonuses. Krafton ousted the developer's leadership team and replaced them with one of its other studio leads.
The drama has led to strong calls for the game's boycott, with one thread on reddit hitting the frontpage of the site hard, with over 30,000 upvotes.
Subnautica's ousted founders have claimed that the game's delay is effectively arbitrary, noting that the game is ready to hit its early access targets already. Krafton disagreed, stating that the game needs more content before it can hit early access. The delay reportedly frees Krafton Inc. from having to pay out the aforementioned bonuses, leading to fans crying foul, and the subsequent calls for boycott.
The new trailer above was posted yesterday, and as you might expect, the comments are flooded with calls to boycott the title, and pay the developers their promised bonuses.
Video game boycotts are nothing new, but they're somewhat notorious for having little material impact, providing the game is actually good, of course.
Subnautica 2 looks excellent if its trailers are anything to go by, and there are few games like it out there. The first game was a huge smash hit, and it stands to reason that its sequel will be as well, once it crosses the finishing line.
Krafton Inc. won itself some good will when it saved Microsoft's Hi-Fi Rush studio Tango Gameworks from closure, but these recent events seem to have evaporated that.
It's unknown exactly where things will go from here, but something clearly isn't adding up. It's not like "early access" games are known for being polished and feature-filled, so why is Krafton so eager to delay it like this? The "bonus" controversy seems to be the most obvious explanation, which, if true, represents an utterly scummy move from the company.
Subnautica 2 will hit Xbox Series X|S, Windows PC, Steam, and Xbox Game Pass some time in 2026.
Update (July 11, 2025): Krafon Inc. and Unknown Worlds' leaders respond.
It looks like things are just beginning for this drama, as ousted Unknown Worlds' co-founder took to reddit to announce that the former leaders are suing Krafton Inc.
"It continues to be an explosive and surreal time for the Subnautica team and community. None of this is what we wanted. But we truly appreciate the amazing support we’ve gotten from everyone," Subnautica founder Charlie Cleveland wrote on reddit.
"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."
Lawsuit (a community update from Charlie) from r/subnautica
Krafton Inc. has pointed blame firmly at Charlie Cleveland and other Unknown Worlds' founders, in a sternly worded statement posted in a huge pop-up on Krafton's corporate website.
"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," Krafton Inc. explained. "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."
Krafton Inc. has alleged that the ousted leadership team "abandoned" responsibilities towards the game, and went as far to suggest that Charlie Cleveland decided to "focus on a personal film project," instead of work on 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."
Krafton vaguely suggested that it would "compensate" remaining team members for their work on Subnautica 2, in response to allegations that Krafton arbitrarily delayed the game to prevent Charlie Cleveland and other co-founders accessing and distributing a previously agreed $25 million bonus. You can read the full statement here.
It doesn't look like this drama is winding back any time soon.
Update (July 12, 2025): Leaked slides detail a reduction in the game's scope, as debate continues
Yesterday, slides leaked detailing how Subnautica 2's early access scope and depth had been impacted due to delays, and their authenticity has since been confirmed by Krafton Inc.
Subnautica 2 Situation Leaks from r/subnautica
Krafton has maintained that Subnautica 2 needed to be delayed in order to pack more content in the game, despite the fact it would've been launching in early access, not as a finished, finalized product. Krafton's own Player Unknown's Battlegrounds launched into early access, allowing the developers and community to work within a feedback loop to further build the game.
Debate continues to rage over whether or not Krafton acted in bad faith when it delayed the game, cutting Unknown Worlds' founders out of a reported $25 million bonus pay package. It has been suggested that this money was supposed to be distributed among the game's developers, and that Krafton arbitrarily delayed the game to avoid making these payments.
Krafton's statement on the slides are as follows.
"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 recognizes 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. KRAFTON believes that minimizing 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."
Update (July 15, 2025): Krafton Inc. extends bonus period
The biggest area of contention around Subnautica 2 remains the matter of developer bonuses. Previously, it was thought Subnautica 2 developers would share a $25 million bonus pool if the game hit certain milestones by 2025. With Krafton delaying the game, many thought it was a cynical ploy to avoid paying out the bonuses.
Now, Bloomberg is reporting that Krafton has extended the bonus window through to the end of 2026, meaning that developers who remain onboard with the game should be elligible, providing the game isn't delayed again, that is.
Regardless, Unknown Worlds ousted leads are still intending to sue Krafton Inc, although details of the complaint remain sealed — for now.
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