Krafton has officially confirmed the leaked reports about delays in the development of Subnautica 2. According to an internal development analysis shared with the media, the company recommended increasing the content volume and polishing the game further before release.
The delay in Subnautica 2’s launch stems from disputes between former Unknown Worlds executives Charlie Cleveland, Ted Gill, and Max McGuire and Krafton, which acquired the studio in 2021.
Two internal slides from a May 2025 presentation reveal Krafton’s assessment of the game’s development status. The first slide summarizes that although the game contains various content, it currently lacks the freshness and scale expected from a sequel.
The second slide lists five major content elements missing in the 2025 version compared to the early 2023 test build: two biomes, one leviathan-class creature, one vehicle, one game mode, and a narrative arc delayed with about six hours of content cut.
Krafton’s report states that compared to the initially planned early test release, the current target content volume has been reduced or adjusted across biomes, creatures, equipment/progression systems, and special features. Due to this gap, the release timeline and development roadmap need reevaluation.
In a statement to the media, Krafton acknowledged the leaked document as part of an internal milestone review process conducted regularly with all its creative studios to assess progress, clarify goals, and ensure projects meet Krafton’s creative and quality standards.
These revelations complicate the situation and partially validate Krafton’s stance. The delay and the dismissal of Cleveland, Gill, and McGuire were not merely to avoid paying the promised $250 million bonus to the studio.
Previously, forum posts called for a boycott of Subnautica 2 following the dismissals, speculating that the fired developers wanted more development time while Krafton pushed for the original release window. However, Unknown Worlds co-founder Charlie Cleveland recently stated, “We knew the game was ready for early testing, and everyone was ready to play.”
Krafton’s internal development metrics are not absolute; what Krafton sees as “insufficient progress” may be reasonable adjustments by Unknown Worlds that could have been addressed during early testing. Without more input from Unknown Worlds staff or hands-on experience with the game, the exact situation remains unclear.
Relations between Krafton and the dismissed developers have soured. Krafton publicly criticized Cleveland, Gill, and McGuire for betraying trust and abandoning responsibilities, accusing Cleveland of prioritizing a personal film project over Subnautica 2’s development. Cleveland has confirmed that the three have filed a lawsuit against Krafton.
