Unknown Worlds Entertainment, the studio behind the beloved Subnautica franchise and current developer of Subnautica 2, has released a community letter in response to mounting backlash following a dramatic leadership change. Despite the official statement, fans remain deeply concerned about the future of the long-awaited sequel.
Studio Shake-Up Sparks Community Concerns
In early July, Krafton Inc., the parent company of Unknown Worlds, announced that the studio’s entire leadership team had been replaced, naming Steve Papoutsis as the new CEO effective immediately. Papoutsis is best known for his executive roles on the Dead Space franchise and its spiritual successor, The Callisto Protocol.
The announcement confirmed that the original co-founders of Unknown Worlds—Charlie Cleveland, Ted Gill, and Max McGuire—have officially exited the studio and are no longer involved in the development of Subnautica 2. This revelation has shocked fans who had followed the series since its inception and were anticipating a sequel shaped by its original creative team.
Community Letter Attempts To Reassure Fans
Following an outpouring of concern and frustration on platforms like Reddit, Discord, and Twitter/X, Unknown Worlds issued a public letter to the community on their official website. The letter states that the studio is supporting Papoutsis through the transition and emphasizes that the rest of the development team working on Subnautica 2 remains unchanged.
“Our talented and passionate team remains hard at work on the next Subnautica game,” the letter reads. “We’re confident in Steve Papoutsis’ leadership and excited about what’s ahead.”
However, for many fans, the reassurance hasn’t been enough.
Fan Reaction: “It Doesn’t Feel Like the Same Game Anymore”
Reactions to the leadership shift have ranged from disappointment to outrage. Some longtime fans expressed skepticism that the creative spirit of Subnautica can survive without its founding visionaries.
“I’ve waited years for Subnautica 2, but now I’m worried it won’t feel like Subnautica at all,” one Redditor posted.
“This feels like corporate interference, not a creative evolution,” another user commented.
Many worry that the change could signal a move toward monetization strategies or gameplay design decisions that deviate from the franchise’s core.
Industry Veteran or Risky Gamble?
While Steve Papoutsis brings decades of experience, including successful AAA projects, fans remain cautious. Some supporters note that his previous projects had more narrative and action-focused elements, raising questions about whether Subnautica 2 will retain its distinct atmospheric exploration and survival identity.
Analysts suggest that Krafton may be positioning Subnautica 2 as a broader commercial title—but whether that aligns with fan expectations remains uncertain.
Unknown Worlds has not provided a timeline for the next Subnautica 2 update or reveal, but the team has promised that development is “ongoing and strong.” Whether that promise is enough to retain the trust of the fanbase is still unclear.
For now, the underwater world of Subnautica remains in development limbo—still promising, but suddenly far less predictable.