Subnautica 2 Delay Threat $250 Million Bonus

Krafton postponed the release of Subnautica 2, putting at risk the US$250 million bonus that would be paid to the developer Unknown Worlds Entertainment. The highly anticipated underwater survival title, now scheduled for 2025 or 2026, raises concerns about the development timeline and the relationship between publisher and studio, especially when large sums of money are tied to performance goals.

The delay and the threat to Unknown Worlds' bonus reveal the financial pressure and inherent challenges in developing high-profile games.

The US$250 million bonus that Unknown Worlds was supposed to receive from Krafton is directly tied to the financial performance of Subnautica 2 in the first two fiscal years after its release. Krafton, the South Korean publisher behind PUBG: Battlegrounds, acquired Unknown Worlds in 2021. The deal included incentive clauses based on the future success of the studio's games. The delay of the release beyond the fiscal year of 2024 (ending in March 2025) and now to 2025 or 2026, directly compromises Unknown Worlds' chances of meeting the revenue goals established in the contract.

Initially, Subnautica 2 was scheduled for 2024, according to Krafton's financial report. However, internal changes and likely development challenges led to this new estimate. The delay means that the game will not be on the market during the crucial period of 2024-2025, which was essential to meet the bonus clauses.

The Subnautica franchise is acclaimed for its open-world survival games, such as the first Subnautica, released in January 2018, and the sequel, Subnautica: Below Zero, in May 2021.

The delay of Subnautica 2 could affect the morale of Unknown Worlds' team, especially with the potential loss of such a significant bonus. In an industry scenario marked by layoffs and studio closures, such as the recent actions of Microsoft and Sony, the generated uncertainty can be harmful. For Krafton, the delay means potentially lower revenue in the short term and a delay in recovering the investment made in acquiring Unknown Worlds. The success of Subnautica 2 is crucial to justify Krafton's bet on the franchise.