Crytek Finally Breaks Silence on its Financial Situation

Crytek Finally Breaks Silence on its Financial Situation

26
Richard Walker

Crytek has today addressed its financial situation following reports that the company had failed to pay employee wages at some of its studios for months. Crytek has since moved to dismiss these reports as rumours, claiming that the company "has been in a transitional phase" in a note issued to GamesIndustry.biz.

According to the Crytek representative issuing the statement, the firm has been using its period of transition to secure more capital as it moves from a status as developer to online publisher. Apparently, that capital has now been generated and Crytek is prepared for the long term, declaring that "we won't be communicating further details about our developments and progress."

Here's Crytek's statement in full:

"In recent weeks, there have been repeated reports and rumours relating to financial problems at Crytek. Having already given an update to staff across all our studios, we are now in a position to share more details with members of the press and public.

Internally, we have acknowledged that the flow of information to employees has not been as good as it should have, however we hope you understand that communicating details of our plans publicly has not always been possible.

Like the games industry as a whole, Crytek has been in a transitional phase. Our evolution from a development studio to an Online-Publisher has required us to refocus our strategies. These challenges go along with an increased demand for capital which we have secured.

We can now concentrate on the long term strategic direction of Crytek and our core competencies. We kindly ask for your understanding, that we won't be communicating further details about our developments and progress.

Ultimately, with our organisation, capitalisation, portfolio and technologies we have now laid the foundations for securing Crytek's future - not just in the short term, but also long term.

Through this period of speculation, we are thankful for the support and encouragement we've received from our community and our partners, and for the contribution all of our staff have made. We remain committed to doing what we are best known for and trying to develop the best interactive experiences and technology possible for everyone who loves gaming.

We are confident that we will be able to share more positive news on Crytek's progress soon."

The status of a Ryse sequel for Xbox One remains unknown, however, with Crytek's next games being free-to-play titles Hunt: Horrors of the Gilded Age (preview here) and Arena of Fate.

Comments
26
  • So, they took all that to say "it's all true, we found more investors however, and we swear were goign to pay our people. Please stop saying mean things about us.
  • Smell that? Smells like bullshit.
  • Come on MS, buy up Crytek and Capcom and you have a chance to take this generation.
  • @2: What I smell is someone overusing that phrase. Seriously.
  • well ... it means no Ryse 2? :(
  • With Crisis' story lack luster and for all intensive purposes Ryse was a flop. I was pulling for Crytek throughout the Crisis series, but now I would actually love to see them fail as a company. This whole pay to win and pay to play with microtransactions shit is really pissing me off. So F u Kim Kardashian Hollywood, You go to hell and you die.
  • @5 but what if #2 was Karl? He would then simply be performing his heroic duty.
  • That bullshit corporate response they released at the top of the page just ensures that I'll never give them my money in the future. It's simply insulting to be honest and even more so to their employees. I guess bleeding out is a transitional phase, if you're asshole enough to word it that way. And not paying your employees for months? Get fucked Crytek, you deserve to go out of business.
  • @#5: Smell that? It smells like someone needs to get a life.
  • @10 This coming from the guy who keeps posting "smfh" on slender the arrival achievements being added on this site STFU
  • @3 your clearly somebody who doesn't understand what ftp is. Where have you been for the last 5 years. Idiot
  • Whenever I hear about a game being free 2 play I just turn and run in the other direction. Because what I really hear is free 2 price gouge.
  • Free 2 Play? So that's gonna mean games you can play on Facebook? I'm not a fan of these types of games, as they never impress me. But I won't say I'll avoid it, but will deserve judgement until I see more of these games.
  • @7 Microsoft wants to buy the IP and make it. Crytek doesn't want to sell Agreed MS should just buy them, and while Capcom might be smart, I'm not entirely sure that they'd go for it
  • Yeah they are transitioning from making money on AAA retail titles to losing money on F2P bullshit...no worries.
  • Damn I used to look forward to anything with Crytek's name attached to it and now they are just another lame ass company.
  • RIP Crysis in advance...really liked to see a Crysis in next gen...rather early
  • -Shakes head and sighs- Failing to pay your employees isn't a 'transitional phase' and it never will be. Crytek, go and rot in your grave, you haven't had gamers best interests for years, you've had the opposite of that in fact, it's not good to see people loose their jobs, but its better to not work, then to work for nothing in this case.
  • @4: Microsoft needs to not buy any 3rd party, they showed up what they're capable of by running one of the best developers straight into the ground. Yes I'm talking about Rare. RIP...
  • Ryse 2 pleases
  • Transitional phase is business speak for going from having money, to not having money.
  • I don't see how a developer like them can switch to the p2p model when they are so good at making games and engines.
  • I'll be honest I won't miss Ryse 2
  • I didn't realise Hunt was Free to Play crap. They really are fucked then if they're carrying on down the Free to Play route. Sucks to be them, but entirely their own fault.
  • Unless I missed something while they said the employees got information on the matter, have they actually bothered to pay them yet. That's the bigger issues in my eyes, sod the transitional phase, if you you don't pay your employees you won't have any better long. People have bills to pay, no one is going to wait around for long when they can't afford to live.
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