In a surprising move, Krafton has announced a complete overhaul of the leadership team behind the upcoming Subnautica 2, appointing gaming industry veteran Steve Papoutsis as the new CEO of Unknown Worlds Entertainment. This abrupt change comes as a shock to fans, given the lack of prior indications about internal issues at the studio.

Unknown Worlds, the original creator of the Subnautica franchise, was acquired by Krafton in 2021 following the successful releases of both Subnautica and its expansion Below Zero. Development on the sequel had been progressing quietly until this unexpected leadership transition.

The transition sees Papoutsis, former CEO of Striking Distance Studios, taking immediate control on July 2nd. He replaces the studio's original founders - Ted Gill, Charlie Cleveland, and Max McGuire - who had guided the Subnautica series from its inception. Krafton's official statement cites the need to 'prioritize development momentum' as the reason for this dramatic change, though specific details remain unclear.

This isn't the first organizational shift within Krafton's studios this year. The publisher previously implemented layoffs at Striking Distance Studios in February, the very studio Papoutsis previously led. While the current changes at Unknown Worlds appear more focused on leadership rather than broader staff reductions, they reflect the ongoing challenges facing game development studios in today's market.

Despite concerns from fans about the sudden leadership change, Papoutsis brings considerable experience to the role. His background includes significant work on EA's Dead Space franchise, with Dead Space 2 frequently ranked among the greatest horror games of all time. This expertise in creating atmospheric, tension-filled experiences could prove valuable for Subnautica 2's underwater survival horror elements.