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  1. Games
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  3. Subnautica 2

As Subnautica 2's ugly $250 million lawsuit debate rumbles on, its new CEO hits back at claims the game was delayed to save a huge payout

News
By Jordan Gerblick published 17 July 2025

Unknown Worlds CEO Steve Papoutsis also says he's not there to "upend any of the development"

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Subnautica 2
(Image credit: Unknown Worlds)
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Steve Papoutsis, the new CEO of Subnautica 2 developer Unknown Worlds, has dismissed claims that Krafton delayed the sequel in an effort to prevent developers from receiving a $250 million revenue target payout.

In a newly public 58-page lawsuit, ousted former Unknown Worlds leaders Charlie Cleveland, Ted Gill, and Max McGuire claim Krafton "flagrantly breached both the letter and the spirit of the promises at the very core of its agreement to purchase Unknown Worlds" largely to deny the developers the $250 million payout stipulated at the time of Krafton's $500 million acquisition.

Talking to GamesRadar+, Papoutsis said: "I don't think that's the case. Personally, what was presented to me when I was asked to participate and help the team was nothing but encouragement for making a great game from Krafton.

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"A commitment to players, a commitment to the creative process, a commitment to ensuring that, when we do choose to go to Early Access, it meets players' expectations. That is all that's ever been discussed to me, and that is a huge part of why I felt good about stepping in and accepting this opportunity."

Krafton itself has gone on the record to deny that there was "any contractual or financial consideration" behind the delay and that a release date shift was being considered even before the leadership shakeup that stirred this whole dispute into motion.

Papoutsis repeatedly stressed during our conversation that he sees his position as Unknown Worlds CEO as more of a support role than someone driving the creative direction of Subnautica 2.

"I'm not coming into this situation where they need creative leadership," he said. "They've got that covered, where they need a person to lead the day to day development plan. They've got that in place.

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"I'm coming in to do whatever I can in terms of support within the greater organization to help keep an eye out for anything that's related to the project that is not necessarily about the development – any other business related aspects, any alignment with partners, outside of the direct development team – and obviously, share my experience and my insights with the team as needed."

Papoutsis also assured he isn't "coming in here to upend any of the development. They've got a creative vision. They've got a wonderful team of developers. That is that is not what is required here. What's required here finding spots where I can provide value and support the team on any and all things related to development, not to insert myself into a situation."

The dispute between Krafton and former Unknown Worlds leadership seems to evolve and intensify by the day, and there's a good chance we'll never hear the full story from an impartial perspective, particularly now that ongoing litigation is making those involved rightfully reticent to share details publicly.

Subnautica 2 is due out in Early Access next year.

Subnautica 2 leak confirmed by Krafton, highlighting the cause of the survival game's delay and publisher's plans to "enhance the content volume and level of polish before launching"

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Jordan Gerblick
Jordan Gerblick
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Staff Writer

After earning an English degree from ASU, I worked as a corporate copy editor while freelancing for places like SFX Magazine, Screen Rant, Game Revolution, and MMORPG on the side. I got my big break here in 2019 with a freelance news gig, and I was hired on as GamesRadar's west coast Staff Writer in 2021. That means I'm responsible for managing the site's western regional executive branch, AKA my home office, and writing about whatever horror game I'm too afraid to finish.

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