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I believe they are going get everything in place before the 2nd chapter. The last thing they said they would do that hasn't been done, aside from the 2nd chapter and the kraken is ship customization. So my guess would be that ship customization comes next and then the 2nd chapter. The squid might be a boss battle.
I'm not all that concerned with the kraken either. I would hate to think that anything would be held up for it, it can't be worth it.
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