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Is Krafton Still Making Subnautica 2? Unknown Worlds Layoffs Explained

Subnautica 2 is one of the most highly anticipated games on the calendar, sitting with the second-most wishlists on Steam, but concerns have been raised following surprise layoffs from Krafton.

Earlier this month, veterans from Unknown Labs were removed from their roles by parent company Krafton, raising worries about the future of development and leading to questions on whether Subnautica 2 is still on the cards to arrive this year.

We’ve answered all the key questions below to give you a full overview of what has gone on and what it may mean for Subnautica 2 moving forward.

Is Krafton Still Making Subnautica 2?

A leviathian in the deep in Subnautica 2.
Still on course. Image via Unknown Worlds

Yes, Krafton is still making Subnautica 2, and the development of the game has not been canceled following recent layoffs.

Krafton said following the news that Steve Papoutsis, who is joining Unknown Worlds as CEO, will “prioritize development momentum and delivering [the] best possible fan experience,” along with bringing “renewed energy and momentum.”

CH Kim, Krafton’s CEO, said that “there is nothing more important than the gamer experience,” and, due to the anticipation for the release of Subnautica 2, players are owed “nothing less than the best possible game, as soon as possible.”

While a release of Subnautica 2 is very much still the intention, with early access initially due to release later this year, it is not clear whether the timeline has been affected by the shock layoffs.

In a community letter from Unknown Labs, it was explained that “the team that has been working on the gamer day-to-day over the last few years remains completely unchanged,” including veterans of the Subnautica series. Crucially, it added that “Krafton feels strongly about supporting that vision at the studio.”

An update to the schedule, including an early access tmeline, is “coming soon,” and nothing has changed with the approach to the game, which remains a single-player first experience, with optional co-op, and no subscriptions, loot boxes, battle pass, or microtransactions.

Unknown Worlds Layoffs Explained

Layoffs from Krafton included the previous leadership team of Unknown Worlds; Ted Gill, Charlie Cleveland, and Max McGuire.

Cleveland and McGuire were founders of the company 24 years ago, while Gill was with Unknown Labs for seven years, having joined as president before promotion to CEO in August 2024.

According to the community later issued after the layoffs, no other employees involved in development were affected, reducing the sounds of the alarm bells that were ringing for many in the community.

However, it still remains unclear exactly how these changes will impact Subnautica 2 moving forward, if at all, and we’ll be keeping a close eye on developments.

Is Subnautica 2 one of your most anticipated games of the year? Let us know your thoughts in the Insider Gaming forum.


For more news, check out why Wuchang: Fallen Feathers could be one of the big surprises of 2025, and then take a look at Romero Games’ denial of studio closure.

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