Key Takeaways
- Steve Papoutsis has been appointed CEO of Unknown Worlds, replacing the studio’s founding leadership.
- Papoutsis previously led Striking Distance Studios during the troubled launch of The Callisto Protocol.
- The future of the Subnautica franchise remains unclear following the exit of its original creators.
Krafton Appoints Industry Veteran Amid Studio Restructuring
Krafton has announced that Steve Papoutsis has taken over as CEO of Unknown Worlds, the studio behind the critically acclaimed Subnautica series. This leadership change marks a significant shift for the Krafton-owned developer, as it comes alongside the departure of three of the studio’s most influential executives: CEO Ted Gill, Subnautica creative director and co-founder Charlie Cleveland, and technical director Max McGuire.
Papoutsis Brings Experience—and Controversy—from Striking Distance
Steve Papoutsis is no stranger to high-stakes development environments. He previously served as CEO of Striking Distance Studios, which developed The Callisto Protocol, a survival horror game that struggled to meet commercial expectations. Despite its reported $160 million budget, the title received a “Mixed” rating on Steam with over 32,000 user reviews and a Metascore of 69.
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During Papoutsis’s tenure, the studio revised its sales expectations downward from 5 million to 2.1 million copies and laid off a majority of its development team in early 2025. Prior to his time at Striking Distance, Papoutsis held senior roles at several well-known studios, including the now-defunct Visceral Games, Baobab Studios, and Crystal Dynamics.
Unknown Worlds Faces Uncertain Future Post-Subnautica
The leadership transition raises questions about the creative direction of Unknown Worlds going forward. The departures of Cleveland and McGuire, both central to the Subnautica franchise’s success, may signal a new chapter for the studio—possibly one less focused on its hallmark underwater exploration series.
With Papoutsis at the helm, it remains to be seen whether the studio will pursue new IPs, continue evolving the Subnautica brand, or shift toward different genres altogether under Krafton’s broader strategic vision.
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