Krafton Delays Subnautica 2 Release, Jeopardizing $250 Million Bonus

In a significant shift within the gaming industry, Krafton, the South Korean video game publisher, announced a delay in the release of the highly anticipated title, Subnautica 2, originally set to debut in Steam Early Access later this year. The delay, now pushing the launch to 2026, has raised concerns about the potential forfeiture of a $250 million bonus payout for the development team at Unknown Worlds Entertainment, which is contingent upon meeting specific revenue targets.

On July 10, 2025, Bloomberg reported the news, which was subsequently confirmed by Unknown Worlds. The studio attributed the decision to insights gained during recent playtesting, indicating that certain areas of the game required further improvement prior to its early access launch. In their official statement, the developers emphasized, "Nothing is changing in terms of the direction of the game or the team behind it; we just want to provide a little bit more content for our first Early Access release."

This announcement comes on the heels of a major leadership transition within Unknown Worlds. Following the departure of CEO Ted Gill, game director Charlie Cleveland, and technical director Max McGuire, Steve Papoutsis, the CEO of Striking Distance Studios, took over the reins at Unknown Worlds. The transition has sparked controversy, particularly regarding allegations that Krafton had a hand in displacing the studio's original leadership. Cleveland expressed his shock over the situation in a farewell post on Reddit, stating, "To find that I’m no longer able to work at the company I started stings."

The reported bonus payout, which is tied to revenue goals set around the original release date, has become a focal point of this delay. According to internal sources who spoke to Bloomberg anonymously, the bonus was structured to reward approximately 40 staff members at Unknown Worlds, with payouts varying, but predominantly in six-figure sums. However, the delay now casts doubt on whether the studio will achieve the revenue targets necessary to unlock the payout, effectively putting the bonus at risk.

In a statement to Bloomberg, Krafton maintained that the delay was not motivated by contractual obligations or financial considerations. Papoutsis, during a recent company town hall, stated that the decision to delay was made to ensure the game was fully prepared for release, refuting any claims that the delay was strategically designed to circumvent the bonus payout.

Reviewing the acquisition agreement under which Krafton purchased Unknown Worlds in 2021, the stipulations for the $250 million bonus are clear: it was to be awarded if the studio achieved certain revenue benchmarks by the end of 2025. With the delay now firmly in place, achieving these benchmarks appears increasingly unlikely.

This situation underscores a growing tension within the gaming industry as companies balance creative integrity with financial objectives. Krafton, which reported record revenue and operating profits for the fiscal year ending December 31, 2024, has indicated plans for aggressive investments in its production capabilities to foster franchise growth in the coming years.

As the gaming community awaits further developments, the implications of this delay extend beyond just financial considerations; they reflect a broader narrative of organizational dynamics and the challenges of maintaining creative autonomy in an increasingly commercialized environment. The future of Subnautica 2 now remains uncertain, with fans and employees alike hoping for a resolution that honors both the creative vision of Unknown Worlds and the financial realities imposed by corporate oversight.