Krafton Confirms Subnautica 2 Document Leak, Drama Escalates

Amid escalating tensions surrounding a potential $250 million bonus, Krafton has officially confirmed the authenticity of a leaked internal development document related to Subnautica 2, acknowledging the report’s legitimacy amid growing public scrutiny.

To provide context: Krafton acquired Unknown Worlds in October 2021, with assurances that the Subnautica developer would retain its independence. However, last week marked a dramatic shift when Steve Papoutsis, former CEO of Striking Distance, was appointed as the new CEO of Unknown Worlds. This sudden leadership change resulted in the immediate departure of longtime leaders Ted Gill, Charlie Cleveland, and Max McGuire. In response, co-founder Charlie Cleveland expressed his dismay, stating, "after all these years, to find that I’m no longer able to work at the company I started stings." He also indicated that while the former leadership believed the game was nearing early access readiness, Krafton did not share the same assessment.

Shortly thereafter, reports emerged that Subnautica 2 had been delayed to 2026—just months before Krafton was expected to pay a $250 million performance bonus to the development team. According to Bloomberg, this bonus was contingent on Unknown Worlds meeting specific revenue targets by the end of 2025, a milestone now jeopardized by the delay. The outlet noted the postponement came "against the wishes of the studio’s former leadership."

Krafton has publicly maintained that the delay was not influenced by financial or contractual motives. Instead, the company cited feedback from playtests and stated that discussions about a delay were already underway prior to the leadership overhaul. In response to Krafton’s statement, the ousted leadership team announced they are pursuing legal action against the publisher.

The situation deepened with the leak of an internal milestone review document offering a critical assessment of Subnautica 2's current development status. Rather than deny its existence, Krafton verified the document's authenticity, stating: "Given these circumstances, Krafton has determined that transparent communication is necessary and has chosen to confirm the authenticity of the document."

The leaked material consists of two pages from a development review, appearing to be photographs taken from a computer screen. The report highlights a significant gap between Krafton’s expectations and the game’s current state. While the author or originating entity remains unidentified, the critique is clearly directed at Unknown Worlds. It recommends launching the game with an MVP-level build that delivers a polished core gameplay loop, but notes that the current version "lacks the level of polish and market impact required to drive IP growth and expansion."

The document further states: "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. 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 remains unclear how the document entered the public domain.

A leak from a credible source regarding the milestone review of Subnautica 2
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In a statement provided to Eurogamer, Krafton addressed the growing speculation: "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 company continued: "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. 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."