• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Crytek finally addresses financial situation

S

shinobi602

Member
Update:

After months of missed paychecks and walk-outs, the staff of Homefront developer Crytek UK were finally paid this week, according to two people familiar with the company.

http://kotaku.com/crytek-uk-has-finally-been-paid-sources-say-1610977080
Click to expand...



Original:

CryEngine creator says it has been enduring "transitional phase," but has secured additional capital for the long term
Click to expand...
When reports first spread that Crytek had been missing payroll for months at some of its studios, the publisher dismissed the claims as rumors. However, reports of trouble at the company persisted and expanded, and today, a Crytek representative provided GamesIndustry.biz with its first statement on the situation since the original denial.

The full statement follows below:

"In recent weeks, there have been repeated reports and rumors 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 organization, capitalization, 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."
Click to expand...
Click to expand...
Via GI.Biz
 
M

Mistouze

user-friendly man-cashews
Rather than information I think it's the flow of money between Crytek and its employees that has been problematic.
 
P

Pikma

Banned
Blah blah blah blah blah blah blah blah=
We can confirm we're fucked but please don't speculate on how much fucked we are, and please, don't ask back, thanks.
 
N

Nirolak

Mrgrgr
Deadly Cyclone said:
Um,
"CryEngine creator says it has been enduring "transitional phase," but has secured additional capital for the long term"

seems like an answer. They found money. They will continue to exist.
Click to expand...
If this is true, we should hear pretty soon that they're completely paying all their employees from multiple sources, including their back wages.

They were outright lying earlier when they said they had no issues, so I don't see why we should put 100% faith in their statements when they make them now without other evidence.
 
K

kevin1025

Banned
Basically, "us going from cool studio to shallow studio has been difficult, so a lot of our key personnel have fled and we're telling the rest of the staff to STFU. Also, please be excited."
 
J

Jito

Banned
Hopefully this means they've cancelled all their shitty F2P escapades and their focusing on making decent games again.
 
N

Nirolak

Mrgrgr
Jito said:
Hopefully this means they've cancelled all their shitty F2P escapades and their focusing on making decent games again.
Click to expand...

They explicitly say they're focusing on the f2p direction.

"Our evolution from a development studio to an Online-Publisher has required us to refocus our strategies."
 
L

L~A

Member
TheSpaceBetween said:
They didn't say anything about why they didn't pay their employees...
Click to expand...

2282352ik5d.jpg
Click to expand...

Yeah, kinda fishy they're not even acknowledging the issue. Not even a "eveyrthing's back to normal".
 
D

Deadly Cyclone

Pride of Iowa State
Nirolak said:
If this is true, we should hear pretty soon that they're completely paying all their employees from multiple sources, including their back wages.

They were outright lying earlier when they said they had no issues, so I don't see why we should put 100% faith in their statements when they make them now without other evidence.
Click to expand...

True, we'll see if they eventually fold, but why even talk about it at all if they didn't actually find money? I don't see the win there, aside from maybe getting press of your back.
 
eot

eot

Banned
I suspect they'll need more than just an injection of cash. Going from a single studio to nine in span of just seven years and then somehow just running out of money screams mismanagement. How do you not see that coming? How do you keep expanding instead of downsizing? If they're gambling on F2P I feel bad for their investors.
 
J

jschreier

Member
Jimmyfenix said:
What do you make of this Jason?
Click to expand...
Bouncing it off sources. Trying to find out more.

Classy of them to send their statement to another media outlet when we've spent weeks asking for their side of the story and giving them a heads up every time I was about to run a story.
 
V

Vash63

Member
Yay, so at least CryEngine development will continue so Star Citizen and Evolve can keep getting updates. Hope the Linux port is as good as UE4's.

They haven't made a good game since Crysis 1, but damn is it still a great engine.
 
P

Pikma

Banned
I don't believe any of their shit, it wouldn't be the first lie regarding their current situation. hope I'm wrong though, since there are people waiting to get paid for their jobs
 
P

Pikma

Banned
Gwanatu T said:
Shouldn't have left pc. Stupid consoles ruin everything. That and EA.
Click to expand...
Heh, yeah, blame the consoles, it's totally's not the company management's fault anyway.
jschreier said:
Bouncing it off sources. Trying to find out more.

Classy of them to send their statement to another media outlet when we've spent weeks asking for their side of the story and giving them a heads up every time I was about to run a story.
Click to expand...
Press sneak fucks don't deserve any better.
 
G

Gwanatu T

Junior Member
Pikma said:
Heh, yeah, blame the consoles, it's totally's not the company management's fault anyway.

Press sneak fucks don't deserve any better.
Click to expand...

The fault here is the extraneous budgets put on games that should never have them in the first place. This is a direct result of the state the console gaming market is in, so yes, it is the consoles' fault.
 
You must log in or register to reply here.

Similar threads

Eurogamer - Ubisoft Montreal studio hit with layoffs
6
741
Papa_Wisdom replied
Sega sells Relic and will cut 240 jobs across UK studios | Creative Assembly, Sega HARDlight and Sega Europe will be impacted by the changes
News
40
2K
Angry_Megalodon replied
Playstation Laying Off 900 People - Multiple Studios Effected (Insomniac/Guerilla/Firesprite) - London Studio Shuts Down
10 11 12 13 14
694
42K
Woopah replied
Larian Studio apparently wants to open another branch. The new studio from the developers of Baldur's Gate 3 might be set up in Poland
Rumor
20
1K
Shut0wen replied
Nintendo says it will overcome challenges of generational transition with ‘unique propositions’
News Platform 2
56
4K
newtypepilot replied
Top Bottom