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News  24, Jun 2014

Is Crytek on its way to bankruptcy?

Multiple sources claim that the company is facing money troubles, with paychecks coming in late and employees sending out anonymous tips

The company that developed this game is rumoured to be on the verge of bankruptcy. Image credit: EA

By now, you should realise that a number of hit games are running on the CryEngine engine, created by games studio Crytek. The German company has also done a number of other games such as the Crysis series, the first Far Cry and Ryse: Son of Rome.

Despite all of these monumental achievements, it seems the company is into harsh financial troubles. According to sources and reports from Kotaku, Gamestar and Eurogamer, the studio’s engine is not seeing much use of CryEngine and that employees are facing payment issues: they’re not receiving their cheques and bonuses on time.

An employee from the studio’s Frankfurt division sent an email to Kotaku stating that his/her team had “been paid last month’s salary” and that it was “11 days late” with no explanation by the management. A Crytek UK employee said that the studio had been missing bonuses and was not paid since April.

Its adoption rate for CryEngine too isn’t looking great; it received negative word of mouth during this year’s Game Developers Conference despite the offer the company created to counter Epic Games’ Unreal Engine subscription service. This is coupled with the fact that the Xbox One title Ryse: Son of Rome did not sell well as expected, and that its free-to-play transition with its title Warface “had been painful”. Crytek was also rumoured to be bought. One potential customer include the World of Tanks creator Wargaming.

Also Read: From Crytek to Brain+: Rasmus Højengaard’s startup journey

Crytek’s responses to these rumors have been mostly PR-styled denial. Its official statement to Eurogamer is as follows:

“Regardless of what some media are reporting, mostly based on a recent article published by GameStar, the information in those reports and in the GameStar article itself are rumors which Crytek deny. 

We continue to focus on the development and publishing of our upcoming titles Homefront: The Revolution, Hunt: Horrors of the Gilded Age, Arena of Fate, and Warface, as well as providing ongoing support for our CryEngine and its licensees.

We have received a lot of positive feedback during and after E3 from both gaming press and gamers, and would like to thank our loyal employees, fans and business partners for their continuous support.”

Makes you wonder if its upcoming games, a MOBA named Arena of Fate and a shooter named Homefront: The Revolution, will come out all rosey and proper given these recent developments.

Jonathan Toyad

Jonathan Toyad

If you want an elaborate answer on who would win in a fight between Ultraman and Godzilla, Jonathan Toyad is your man. A six-year veteran in the game journalism industry, he did words and videos for outlets such as GameSpot, GameAxis, IGN and Stuff.TV. Fears coyotes and scorched earths.

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