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Amid intensifying tensions over a disputed $250 million performance bonus, Krafton has officially confirmed the authenticity of leaked internal development documents from *Subnautica 2*—a rare move that underscores the growing rift between the publisher and the studio’s former leadership.
For context: When Krafton acquired Unknown Worlds in October 2021, it pledged to preserve the studio’s creative independence. However, last week’s surprise appointment of Steve Papoutsis—former CEO of Striking Distance—as head of Unknown Worlds triggered immediate executive upheaval. Founders Ted Gill, Charlie Cleveland, and Max McGuire were abruptly removed from their roles, with Cleveland calling the transition "shocking" and expressing deep personal disappointment: "After dedicating years building this company, being suddenly locked out cuts deep."
According to sources, the outgoing leadership believed *Subnautica 2* was ready for early access. Krafton, however, disagreed—citing developmental concerns. The dispute intensified when reports emerged that the game’s release had been pushed to 2026—just months before Krafton was due to issue a $250 million performance bonus contingent on 2025 revenue targets. As Bloomberg reported, this delay effectively voids the payout. Sources suggest the postponement occurred "directly against former leadership's wishes."
Krafton has since denied that financial incentives drove the decision, attributing the delay to internal playtest feedback. The company claims these discussions began before the leadership shift. But shortly after the announcement, the former executives filed legal action against Krafton, citing breach of contract and mismanagement.
The situation escalated dramatically when an internal milestone review document surfaced online. Unusually, Krafton did not dispute its authenticity. Instead, the publisher confirmed the leak and issued a public statement emphasizing transparency: "Given these circumstances, Krafton has determined that transparent communication is necessary."
The leaked material—apparently photographed from a monitor screen—contains two pages of candid feedback from an internal review. While the author’s identity remains unknown, the critique is unequivocal: the current build of *Subnautica 2* lacks sufficient polish and market impact to justify a launch, let alone a successful sequel.
“We recommend enhancing content volume and refinement before launch to ensure broader appeal from early access,” the report states. “While containing diverse elements, the current iteration fails to deliver expected sequel innovation.”
It adds: "Additionally, it doesn't meet the high standards expected by OWSC and Asian markets."
The leak’s origin remains unverified, but its timing and content suggest it may have been part of a broader internal reassessment. Krafton has since confirmed the documents are genuine, calling them “excerpts from an internal milestone review.”
A leak from a credible source regarding the milestone review of Subnautica 2
byu/Complete_Bread_4924 inSubnautica_2
In a formal statement to Eurogamer, Krafton addressed the growing speculation:
“The circulated documents constitute genuine excerpts from an internal milestone review. Krafton confirms these materials were improperly disclosed and acknowledges community confusion.”
“Considering these developments, we've opted for transparency by validating the documents' authenticity,” Krafton continued. “We prioritize minimizing speculation and ensuring accurate player communication.”
“Milestone reviews represent standard procedure across all Krafton studios, helping evaluate progress and maintain creative and quality benchmarks. This process remains fundamental to delivering polished games when appropriate.”
“Krafton remains committed to partnering with Unknown Worlds to meet longtime fans' expectations,” the statement concluded.
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