In a surprising leadership shake-up, Krafton has replaced the entire three-person leadership team behind Subnautica 2, appointing industry veteran Steve Papoutsis as the new CEO of Unknown Worlds Entertainment. The decision marks a dramatic shift for the studio, which has quietly been working on the ambitious sequel to its popular underwater survival franchise.
Steve Papoutsis Takes Over as Unknown Worlds CEO
The change was officially announced by Krafton on July 2, 2025, stating that Steve Papoutsis, formerly CEO of Striking Distance Studios, would take over effective immediately. Papoutsis is known for his work on major titles such as Dead Space and The Callisto Protocol, bringing decades of AAA experience to the table.
He replaces Ted Gill, Charlie Cleveland, and Max McGuire—the co-founders of Unknown Worlds and original creators of the Subnautica franchise.
A Sudden and Unexplained Transition
The move comes as a surprise to fans and industry watchers alike, as there had been little to no public signs of development issues or creative tension at Unknown Worlds. Since its acquisition by Krafton in 2021, the studio had been operating relatively quietly, with the first hints of a sequel emerging from job listings less than a year after the deal.
Now, with the sudden replacement of the original team, speculation is swirling about what prompted the change.
According to Krafton’s official press release, the decision was made to “prioritize development momentum” and enhance the overall fan experience for Subnautica 2. However, the publisher did not elaborate on why the original team was removed or whether they voluntarily departed. Krafton only noted that it “wanted to retain the original team,” but is now “parting ways” with them.
What This Means for Subnautica 2
Subnautica 2 has been described as the series’ most ambitious project yet, aiming to expand the beloved survival experience with multiplayer features, deeper exploration, and a more dynamic world. With the introduction of new leadership, fans are now wondering whether this vision will stay intact—or evolve into something different.
The original developers had been instrumental in shaping the franchise’s tone, pacing, and immersive atmosphere. Their departure could lead to both new opportunities and unforeseen challenges in keeping the spirit of Subnautica alive.
Community Reaction and Concerns
While Krafton positions the move as a step forward, community reaction has been mixed. Some fans are cautiously optimistic about the expertise Papoutsis brings, while others are concerned about a potential shift toward corporate influence and away from the indie roots that made Subnautica special.
“Papoutsis is a solid veteran, but it’s hard to imagine Subnautica without the original devs,” one fan tweeted.
“I just hope they don’t turn it into another generic survival MMO,” another Reddit user added.
What’s Next?
Krafton has not announced any delays or specific changes to Subnautica 2’s roadmap. However, the removal of its original leadership team at this stage in development is undoubtedly a major turning point. Whether Steve Papoutsis will maintain the course or introduce new elements remains to be seen—but one thing is certain: Subnautica 2’s future just became a lot more unpredictable.