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Amid growing tensions over a disputed $250 million bonus, Krafton has officially confirmed the authenticity of leaked internal development documents from Subnautica 2, revealing candid feedback on the game’s progress and direction.
To provide context: Following Krafton’s acquisition of Unknown Worlds in October 2021, the publisher assured the studio would operate independently. 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 replaced “effective immediately.” Cleveland publicly expressed shock, stating, “After dedicating years building this company, being suddenly locked out cuts deep.” The outgoing leadership believed Subnautica 2 was ready for early access; Krafton disagreed.
The situation intensified when reports emerged that Subnautica 2’s release had been delayed to 2026—just months before Krafton was due to pay a $250 million performance bonus. According to Bloomberg, hitting specific revenue targets by 2025 would have triggered the payout. The delay, sources say, occurred “directly against former leadership’s wishes”, effectively nullifying the bonus opportunity.
Krafton told IGN the decision was not financially driven, citing concerns over gameplay polish and player feedback from internal playtests. They also claimed that discussions about a potential delay predated the leadership changes. In the aftermath, the former executives announced plans to pursue legal action against Krafton.
The rift deepened when a detailed internal milestone review document leaked online. Rather than deny its authenticity, Krafton confirmed it, stating: “Given these circumstances, Krafton has determined that transparent communication is necessary.”
The leaked materials—apparently photos of a monitor screen—contain two pages of critical feedback highlighting a gap between Krafton’s expectations and the current state of development. While the author’s identity remains unknown, the document delivers a clear, no-holds-barred assessment: the game lacks sufficient polish and market impact to successfully expand the franchise.
“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.”
“Additionally, it doesn’t meet the high standards expected by OWSC and Asian markets.”
The source of the leak remains unconfirmed.
A leak from a credible source regarding the milestone review of Subnautica 2
byu/Complete_Bread_4924 inSubnautica_2
“Krafton is issuing the following statement in response to growing speculation surrounding the development of Subnautica 2,” the publisher told Eurogamer. “We aim to provide clarity regarding current circumstances.”
“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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