Krafton Confirms Subnautica 2 Internal Document Leak

In the midst of an escalating dispute over a $250 million bonus, Krafton has taken the unusual step of authenticating a leaked internal document for Subnautica 2 that delivers a highly critical assessment of the much-anticipated sequel.

Some background is necessary. Krafton finalized its acquisition of Unknown Worlds in October 2021, assuring at the time that the Subnautica studio would retain its operational independence. That changed abruptly last week when former Striking Distance CEO Steve Papoutsis was announced as the new CEO of Unknown Worlds. This surprising move confirmed the immediate replacement of the previous leadership—Ted Gill, Charlie Cleveland, and Max McGuire. In a later statement, co-founder Cleveland described the "shock" of the leadership change, remarking, "after all these years, to find that I’m no longer able to work at the company I started stings." His comments further suggested that while the ousted team considered the game prepared for early access, Krafton disagreed.

Reports then surfaced last week indicating a delay for Subnautica 2 into 2026. This postponement occurred shortly before Krafton was scheduled to pay a $250 million performance bonus to the development team. According to Bloomberg, the decision to delay "went against the wishes of the studio’s former leadership," and the lucrative bonus was contingent on Unknown Worlds hitting specific revenue targets by the end of 2025. With no game launch in 2025, that payment is now off the table.

In a statement to IGN, Krafton insisted the delay was unrelated to "any contractual or financial considerations," attributing it instead to playtester feedback. The company claimed discussions about a delay were already underway before the leadership team's departure. Shortly after this, the former leaders announced they were filing a lawsuit against Krafton.

The controversy has deepened with the leak of an internal milestone review document containing a highly critical mid-development assessment. Instead of denying its existence, Krafton has verified it, stating, "Given these circumstances, Krafton has determined that transparent communication is necessary and has chosen to confirm the authenticity of the document."

The leaked images, which appear to be photographs of a two-page development review on a PC monitor, highlight a significant gap between Krafton's development expectations and the project's current state. While the report's author is unspecified, it is sharply critical of Unknown Worlds. It recommends Subnautica 2 should "launch with an MVP-level build that allows players to experience the core loop at a high level of quality," but notes the current version "lacks the level of polish and market impact required to drive IP growth and expansion."

"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," the document advises. "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."

The origin of the leaked document's public circulation remains unclear.

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 company told Eurogamer. "This statement aims to offer clarity and context regarding the current situation.

"The document circulating on social media and reported by various outlets is indeed part of an internal milestone review for the Subnautica 2 project. Krafton confirms that portions have been leaked and are being widely shared online and within the community. Krafton acknowledges 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," the publisher continued. "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 each project aligns with Krafton's standards for 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," the statement concluded.