Krafton Replaces Entire Leadership Team at Unknown Worlds, Appoints Steve Papoutsis as CEO

Subnautica 2

Krafton has appointed Steve Papoutsis as the new CEO of Unknown Worlds, the studio behind the Subnautica series.

This change comes as the previous leadership team — Ted Gill (CEO), Charlie Cleveland (Creative Director and Co-founder), and Max McGuire (CTO and Co-founder) — exits the company effective immediately.

While no official reason was provided for the sudden departure, Krafton confirmed efforts had been made to retain the original creators and expressed appreciation for the trio’s role. The original statement read:

"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."

Papoutsis brings significant industry experience to the table. Before this appointment, he led Striking Distance Studios and held senior positions at Visceral Games under EA, where he was involved in notable franchises like Dead Space. Now, his task is to steer Unknown Worlds through the final stages of Subnautica 2's development.

In a statement, Papoutsis said, “I’m excited to join the Krafton family and work with the talented team at Unknown Worlds. The studio is focused on delivering the best possible game for the Subnautica community.” He also acknowledged the contributions of his predecessors and thanked fans for their patience and continued support.

Krafton CEO CH Kim emphasized that this decision aligns with the company’s goal of delivering a more polished and fulfilling experience with Subnautica 2. “We owe our players nothing less than the best possible game, as soon as possible,” Kim stated. “Steve’s leadership will bring renewed momentum and energy to help us meet those expectations.”

The change also raises questions about Subnautica 2's release timeline, especially since details remain limited. So far, the game is set to support co-op play for up to four players and will feature a new alien world filled with fresh environments, creatures, and mysteries. It's currently scheduled for release in late 2025 on PC and Xbox Series X|S, with availability on Game Pass for higher-tier subscribers.

Unknown Worlds was founded by Cleveland and McGuire in 2001 and was acquired by Krafton in 2021. While Krafton initially positioned the studio as an independent entity post-acquisition, the current shake-up suggests a more hands-on approach going forward.

For fans eagerly waiting to dive back into the oceans of Subnautica, the leadership change could either be a new wave of progress or a rocky reef of uncertainty. Either way, Krafton seems committed to ensuring that the next chapter lives up to the series' high standards.