Subnautica 2 Faces Leadership Shake-Up as Original Creators Exit

The development team behind Subnautica 2 is undergoing a major leadership overhaul. Krafton, parent company of Unknown Worlds, has removed the game’s original creators and replaced them with a new executive team, raising alarm among fans as the sequel approaches early access release.

Here’s the TL;DR…

• Co-founders Charlie Cleveland and Max McGuire, along with CEO Ted Gill, have been replaced effective immediately.

• Steve Papoutsis, formerly of Striking Distance Studios, is now CEO of Unknown Worlds.

• Fans fear a shift in direction, particularly toward monetization models like microtransactions or battle passes.

Krafton Removes Original Creators

Krafton announced the leadership change on July 1, 2025, saying it would “bring renewed energy and momentum” to the Subnautica 2 project. As first reported by The Gamer, the company appointed Steve Papoutsis, former CEO of Striking Distance Studios, to lead Unknown Worlds going forward. The departing leadership—Cleveland, McGuire, and Gill—played critical roles in building the franchise, with Cleveland and McGuire founding the studio in 2001 and Gill serving as CEO since August 2024.

IGN noted that Krafton offered no concrete reasons for the sudden dismissal, though all three continue to list their roles on LinkedIn. Papoutsis’ appointment introduces a more corporate flavor to the previously indie-rooted studio, a shift that GamesRadar+ highlights as potentially pivotal to the game’s future.

Krafton claims the original founders will stay on in advisory roles, though it’s unclear what influence they’ll retain.

Development Status of Subnautica 2

Subnautica 2 is currently in development with early access planned for later in 2025. The game promises expanded biomes, new vehicles, and a co-op multiplayer mode—a first for the series. Built in Unreal Engine 5.5.4, the game will carry over narrative elements from Subnautica and Below Zero.

Community Reaction: Distrust and Disappointment

On forums like r/Subnautica, fans have reacted with widespread concern. The community views the original creators as the soul of the franchise, responsible for its distinctive mix of exploration, isolation, and survival. Many fear that their removal opens the door to aggressive monetization strategies, particularly given Krafton’s history with other live-service titles.

Though some fans express hope that Papoutsis’ industry experience might bring polish to the sequel, the majority remain skeptical. Concerns over microtransactions, season passes, and loss of creative vision dominate current discussions.

What This Means Going Forward

With the early access window fast approaching, the leadership shift could alter Subnautica 2’s development trajectory. IGN warns of potential delays or changes to planned features. GamesRadar+ highlights the tension between indie spirit and corporate oversight, a dynamic now at the heart of Unknown Worlds’ evolution.

Krafton’s insistence that the game remains on track does little to calm fears without more transparency. Fans are hoping that events like Gamescom 2025 will provide clearer answers.

News compiled and edited by Derek Gibbs and Steven Bubbles on July 2, 2025. Follow us on ClownfishTV.com for more gaming, pop culture and tech news, and consider subscribing for only $5 per month to get access to exclusive podcasts and other content.

Sources:

• The Gamer, “Subnautica Original Creators Replaced at Unknown Worlds Effective Immediately – Krafton,” July 1, 2025

• IGN, “Subnautica 2 Developer’s Entire Leadership Team Replaced in Shock Move,” July 2, 2025

• GamesRadar+, “Subnautica 2: Everything We Know About the New Underwater Survival Game,” June 30, 2025

• NotebookCheck.net, “Alleged Subnautica 2 Playtest Leak Suggests Terrifying Leviathan, Gene Modding, and VR Compatibility,” June 24, 2025

• r/Subnautica, Community Posts and Comments on Leadership Change, July 1–2, 2025