Overview

The Subnautica 2 Krafton Controversy refers to backlash over the firing of the dev team behind the video game Subnautica 2 by publisher Krafton, allegedly so the company didn't have to pay the team a $250 million bonus to the development team. Krafton acquired Unknown Worlds, the company that developed the original Subnautica, consisting of Ted Gill, Charlie Cleveland and Max McGuire, in 2021.

In early July 2025, it was reported that Krafton fired the team and delayed the release of Subnautica 2. It was later alleged that the team was fired only days after Krafton was potentially due to pay a $250 million bonus to the dev team if they met certain revenue goals by the end of 2025. As the allegations spread, an internal document leaked online about the development of the game, suggesting it was not meeting Krafton's standards and offering a potential reason for the delay and firings. Some saw this as a move by Krafton to change the narrative in its favor. The fired Unknown Worlds team was reported to be suing Krafton over the incident. The firing inspired reactions, memes and an attempted boycott of Subnautica 2 online.

Background

On October 10th, 2021, South Korean game publisher Krafton acquired Unknown Worlds, the studio behind the video game Subnautica.^[1] Reportedly, Krafton originally stated that Unknown Worlds would operate independently.

On July 2nd, 2025, it was reported that Krafton fired and replaced the "leadership team" behind the game, consisting of Ted Gill, Charlie Cleveland and Max McGuire, the original creators of Subnautica. No reason was given for their firing at the time.^[2]

That same day, Krafton^[3] announced that Steve Papoutsis, who has worked on games including Dead Space and the The Callisto Protocol, was made the new CEO of Unknown Worlds.

Developments

Subnautica 2 Delay, $250 Million Bonus Allegations

On July 9th, 2025, Bloomberg^[4] reported, based on information from an anonymous source, that Krafton delayed the release of Subnautica 2 to 2026, only months away from possibly having to pay the dev team a $250 million bonus.

According to the article, the dev team would be awarded the bonus if they managed to hit certain revenue targets by the end of the year. The article reads, "By delaying Subnautica 2 into next year, the company is unlikely to hit those targets and therefore the employees may not be eligible for the payout."

Internal Document Leak, Lawsuit

On July 11th, 2025, a photograph of what appears to be a computer monitor showing an internal Krafton document was leaked online, including to the /r/Subnautica_2^[5] subreddit. The document details the development of the game's Early Access launch.

The second screenshot shows a selection of features that were removed from the game during development, the document explaining, "Due to an overall shift in direction during the development period, development efforts appear to have been concentrated on a smaller set of content. As a result, the scope and volume of content have been reduced or modified from the original plan, indicating the need to reassess the release timeline and roadmap."

That day, IGN^[6] reported that the original founders of Unknown Worlds were pursuing legal action against Krafton.

Three days after the leak went viral, IGN^[7] reported that Krafton confirmed that the screenshots were real, also reporting that Krafton told them the delay was not related to "contractual or financial considerations." Krafton confirmed the authenticity of the screenshots during an interview with Eurogamer,^[8] where a spokesperson was quoted as saying:

"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.

Online Reactions

The developing story around Krafton and Subnautica 2 inspired reactions and memes online in mid-July 2025, with many showing support for the original Unknown Worlds team.

For example, on July 9th, 2025, Redditor u/Specialist-Target461 posted a graphic to the /r/Subnautica^[9] subreddit summarizing the drama and discouraging people from buying the game, garnering over 58,000 upvotes in five days.

On July 11th, X^[10] user @MasteroftheTDS made a post defending Krafton, suggesting that the leaked document suggests that Krafton delayed the game because the devs were making big changes "mid-development," writing, "When the scope shifts this often, consistent delivery becomes nearly impossible," garnering over 220 likes in three days.

That same day, a now-deleted Redditor made a post to the /r/memes^[11] subreddit showing Superman ignoring a burning Krafton building (known as Superman Refuses To Help), garnering over 3,900 upvotes before it was deleted by the Redditor.

Search Interest

External References