The ongoing drama surrounding Subnautica 2’s delay and leadership changes continues, as Krafton released a detailed public statement accusing the studio’s former leaders of “abandoning responsibilities” on the project, claiming they prioritized personal ventures over their contractual obligations and that their actions caused the game’s delay.

In the statement sent to the press and reproduced in full below, Krafton asserts it made “multiple requests” for Unknown Worlds founders Charlie Cleveland and Max McGuire to return to their roles as Game Director and Technical Director, but both declined. “Following the underperformance of Moonbreaker, KRAFTON asked Charlie to fully dedicate himself to Subnautica 2. Instead of engaging in development, he chose to pursue a personal film project,” the statement says. “KRAFTON believes the absence of core leadership has led to repeated misalignment in vision and substantial delays to the project timeline.”

Krafton also references a reported $250 million performance-based bonus pool, with 90% originally earmarked for Cleveland, McGuire, and former CEO Ted Gill before their removal from the project.

The statement concludes with Krafton pledging “fair and equitable compensation for all remaining Unknown Worlds employees... and we reaffirm our commitment to provide the rewards they were promised.”

The full content of the statement is as follows:

To Our 12 Million Fellow Subnauts,

— Inevitable Leadership Change Driven by Project Abandonment–Despite Holding 90% of Earnout for Themselves

First and foremost, we sincerely thank you for your continued support, passion, and unwavering dedication to Subnautica. We wish to provide clarity on the recent leadership changes at Unknown Worlds, a creative studio under KRAFTON.

Background of Leadership Change

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. 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.

Specifically, in addition to the initial $500 million purchase price, we allocated approximately 90% of the up to $250 million earn-out compensation to the three former executives, with the expectation that they would demonstrate leadership and active involvement in the development of 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.

The current Early Access version also falls short in terms of content volume.

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’s Full Support for the Dedicated Development Team

To uphold our commitment to provide you with the best possible gaming experience, we made the difficult yet necessary decision to change the executive leadership. Subnautica 2 has been and continues to be actively developed by a dedicated core team who share genuine passion, accountability, and commitment to the game. We deeply respect their expertise and creativity and will continue to provide full and unwavering support, enabling them to focus solely on delivering the exceptional game you deserve.

KRAFTON’s Commitment to its Promises in Rewarding Employees

Additionally, KRAFTON has committed to fair and equitable compensation for all remaining Unknown Worlds employees who have continuously and tirelessly contributed to Subnautica 2’s development. We believe that the dedication and effort of this team are at the very heart of Subnautica’s ongoing evolution, and we reaffirm our commitment to provide the rewards they were promised.

Fans will always remain at the center of every decision we make at KRAFTON. Moving forward, we promise transparent communication and continued efforts to sustainably develop and expand the beloved Subnautica universe.

Honoring your trust and expectations is a core tenet at KRAFTON. We are committed to repaying your patience with an even more refined and exceptional gaming experience.

Subnautica 2’s entire leadership team was replaced last week by Krafton, with former Striking Distance CEO Steve Papoutsis stepping in, and the game’s release was pushed to 2026. The move came as a “shock” to Cleveland, who said in a Reddit post shortly after his removal that Subnautica 2 was “ready for early release,” that the decision rested “in Krafton’s hands,” and that being removed “stings.”

This was followed by a Bloomberg report alleging the decision was made just before the $250 million bonus was due to be distributed, with staff expecting payouts ranging from hundreds of thousands to seven figures—now uncertain. In a statement to IGN at the time, Krafton said the delay responded to playtester feedback and had no relation to “any contractual or financial considerations.” In response to the leadership shakeup and concerns over withheld bonuses, fans have begun organizing social media boycotts of the game.