Subnautica 2 developer Unknown Worlds is undergoing a massive leadership change, the company's parent company, Krafton, has announced.

In a press release, Krafton revealed that Steve Papoutsis is the new CEO of Unknown Worlds "effective immediately," replacing original Subnautica designer and director Charlie Cleveland, as well as Unknown Worlds CEO Ted Gill and co-founder Max McGuire.

It's unclear if the departures were voluntary, but I've reached out to Krafton for comment and will update this article if I hear back. Either way, it sounds like Cleveland, Gill, and McGuire won't have any involvement in Subnautica going forward.

"While Krafton sought to keep the Unknown Worlds' co-founders and original creators of the Subnautica series involved in the game's development, the company wishes them well on their next endeavors," Krafton said.

"Importantly, Krafton is confident that Papoutsis, with decades of experience behind the planning, development, and production of some of the highest-rated game franchises, will bring renewed energy and momentum to delivering the long-anticipated Subnautica 2 experience to fans."

At Visceral Games, Papoutsis was producer on Dead Space 2 and served as director on Dead Space 3, later joining The Callisto Protocol studio Striking Distance as CEO. It seems he will now lead the creative direction at both Striking Distance and Unknown Worlds.

"There is nothing more important than the gamer experience. Given the anticipation around Subnautica 2, we owe our players nothing less than the best possible game, as soon as possible," said Krafton CEO CH Kim. "We are thrilled Steve is joining us in our shared commitment at Krafton and Unknown Worlds to deliver Subnautica 2 as a more complete and satisfying entry in the series—one that truly lives up to player expectations."

Added Papoutsis, "I am thrilled to be taking on this new role within the Krafton family and to be working alongside the immensely talented team at Unknown Worlds. Player experience is our North Star, and the team is laser-focused on delivering the best possible game for the Subnautica community.

"We appreciate Ted, Charlie and Max for their past roles in having built this beloved world, and thank the fans for your devotion and patience."

As recently as April, Subnautica 2 design lead Anthony Gallego re-committed to the game's 2025 early access launch, although a specific date has yet to be revealed. Such a severe leadership shakeup this late into a game's development is unusual and could potentially signal issues and conflicts around its creative direction.

"Krafton puts players at the heart of every decision because they deserve the absolute best," Kim said. "We understand how eager our community is to dive into the underwater world of Subnautica 2, and we are working diligently to deliver an experience that meets those expectations—while maintaining our unwavering commitment to quality and player experience. We deeply appreciate the patience and trust of our Subnauts, and we are doing everything possible to ensure the final result is worth the wait."

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