Krafton has replaced Subnautica 2's three-person leadership team with industry veteran Steve Papoutsis as the new CEO of Unknown Worlds. The move comes as a bit of a shock for many fans, as there hadn't been much, if any, news about tension or development issues at Unknown Worlds Entertainment. Details are still murky, but it's clear that things are changing for Subnautica 2, at least behind the scenes.
Unknown Worlds has been behind the series since the beginning, with Krafton acquiring the Subnautica studio in 2021, after the first game and its spin-off, Subnautica: Below Zero, were already out. Less than a year later, fans spotted a job listing revealing that Unknown Worlds was working on a sequel, and since then, development has proceeded relatively quietly. That is, until today, when Krafton announced the change in leadership.
Subnautica 2 Change Will Make Leviathans An Even Bigger Threat
An upcoming change to leviathans in Subnautica 2 has sparked some debate among fans, but it will certainly make the creatures more of an obstacle.
Krafton announced that Steve Papoutsis, the CEO of Striking Distance Studios, would take over as CEO of Unknown Worlds "effective immediately" on July 2. Papoutsis replaces Ted Gill, Charlie Cleveland, and Max McGuire, who co-founded the studio and created the Subnautica series, so the shift is a dramatic one on top of being unexpected. Krafton said it wanted to keep the original team onboard, but it's now parting ways with them, and it's unclear why. The publisher has only said that the move is to "prioritize development momentum" and deliver a better fan experience. Devs had already said that Subnautica 2 will be the franchise's most ambitious project to date, which seems in line with Krafton's goal, so where ideas might've clashed isn't evident at the moment.
Krafton Has Replaced Subnautica 2's Entire Leadership Team
This is not the first shake-up to take place at a Krafton-owned studio this year. In February, Krafton laid off several Striking Distance employees, which, notably, is the company that Papoutsis previously led before his new posting at Unknown Worlds. Those layoffs were larger than the Subnautica 2 team's leadership change, but they reflect the difficulties many studios have faced in the current market. Given that the Subnautica 2 shift affected the game's leaders rather than its developers, this case may be more an issue of direction than profitability, but Krafton's relatively vague announcement leaves room for interpretation.
While any news of development change-ups may make fans worry, Papoutsis does have a respectable resume. Before helming Striking Distance, he worked at EA on the Dead Space series. At least one survey claims that Dead Space 2 is one of the scariest horror games of all time, so Papoutsis' experience with it could lend itself well to Subnautica 2.
- Developer(s)
- Unknown Worlds Entertainment
- Publisher(s)
- Krafton
- Engine
- Unreal Engine 5
- Multiplayer
- Online Co-Op
- Franchise
- Subnautica






Subnautica 2 is an underwater survival adventure game set on an all-new alien ocean world. It is the next chapter in the Subnautica universe, developed by Unknown Worlds.
New World, New Adventure
A new world awaits alongside an all-new story. You are a pioneer traveling to a distant world, but something is amiss. The ship's AI insists you carry on the mission. This world is too dangerous for humans to survive… Unless you change what it means to be human. What creatures, intelligent or otherwise, await your arrival?
Explore with Friends
Play alone or with up to three friends in online multiplayer co-op. Whether exploring mysterious ruins, building custom bases, or adventuring deeper into the world… The challenge of this planet will test your ingenuity and ability to adapt, in unexpected and curious ways.
Craft Submersibles, Tools, and Bases
Survival depends on utilizing the right tools. Alongside basic items such as your Scanner and Flashlight, you’ll find recipes for more advanced tools, equipment, and submersibles. Bases are more customizable with an overhauled building system. New tools allow for greater adaptation to the world.
Uncover Diverse New Biomes
From towering underwater cliffs to lush coral fields, this aquatic alien world is brimming with vibrant and breathtaking biomes, each teeming with diverse ecosystems and unique creatures. But something isn’t right. The world is out of balance. What happened here? What happened to you? And more importantly, where are you?
Study Mysterious Lifeforms
Uncover a rich world full of mysterious lifeforms, from the smallest fish to the largest Leviathans. Scan creatures to learn more about them. Use your Biosampler to take samples for study. As you learn more about this world, evolve your genetics to adapt your body for survival.
Survive Terrifying Depths
This world is vast and deep. Venture beyond the safety of shallow waters, descending into a dark unknown. Wonder and danger lurks around every corner. To survive this planet, you’ll need to push beyond your boundaries and unlock the secrets of this strange world.
About the Team
Subnautica 2 is being created by Unknown Worlds, a fully remote studio that traces its roots back to the 2002 Half-Life mod Natural Selection. It is the same studio that created the original Subnautica. The team is scattered around the globe, from the United States to the United Kingdom, France, Iceland, Austria, Australia, Canada, India, and many more places.
Early Access Development
Subnautica 2 will be an Early Access game meaning it will be in active development at release. You may encounter bugs, in-development features, and performance issues. We will be adding additional biomes, creatures, craftables, and narrative as we proceed. Join us in Early Access and help shape the future of Subnautica 2.
- Number of Players
- 1-4
- Platform(s)
- PC, Xbox Series X, Xbox Series S