Report: Crytek Employees Refusing to Come in to Work

[Steven Bogos]

Report: Crytek Employees Refusing to Come in to Work

According to inside sources, the bulk of employees at Crytek's UK office are no longer suiting up and coming in to work.

Oh dear. If you're looking for a little bit more legitimacy that Kotaku [http://www.escapistmagazine.com/news/view/135724-Report-Crytek-Staffers-Havent-Been-Properly-Paid-Since-April], "people familiar with the situation," are reporting that most people are simply not turning up to work.

According to those people, Crytek's UK staff have still not been paid the full amount they are owed, and this week, the staff at Crytek's UK office handed in formal grievance letters and went home. One such source estimates as many as 100 people have left, though it is unclear how many of them have departed permanently and how many are simply waiting for conditions to improve before returning to work.

Apparently, employees at Crytek UK, which is based in Nottingham, are hoping that Deep Silver (who publishes the Saints Row series) will purchase the studio and continue funding development of Homefront: The Revolution.

Both Crytek and Deep Silver have refused to offer comment, although Crytek recently refuted reports [http://www.escapistmagazine.com/news/view/135629-Crytek-Reports-of-Looming-Bankruptcy-Are-False] that the company was close to bankruptcy.

Source: Kotaku [http://kotaku.com/sources-crytek-uks-staff-are-currently-on-leave-1599923133]

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[exobook]

Generally when you can't pay your workers, you are bankrupt.

 

[Scars Unseen]

Generally when you can't pay your workers, you are bankrupt.

Contrariwise, you are much less likely to go bankrupt if you never pay anyone. Of course this probably isn't a viable long term solution...

 

[karloss01]

This is no way to treat the former staff of Free Rdical (former Rare staff) who made some of the best shooters of all time.

 

[Kotoriii]

Time for EA to buy Crytek, so they can make some crappy cash-grab Crysis 4 and then pull the plug on this studio too.

OT: Looks like grim news. I don't think anyone wants to see Cry Engine dying.

 

[exobook]

Generally when you can't pay your workers, you are bankrupt.

Contrariwise, you are much less likely to go bankrupt if you never pay anyone. Of course this probably isn't a viable long term solution...

especially when it shows to everyone that you are in effect bankrupt.

 

[Amaror]

What? wait, what?
Crytek, Deep Silver?
What is going on here, as far as i know all the crysis games, which were from crytek, have been published by EA, so what does have Deep Silver to do with this?
Or were they independent and just had the game published by EA?

 

[Angelous Wang]

What? wait, what?
Crytek, Deep Silver?
What is going on here, as far as i know all the crysis games, which were from crytek, have been published by EA, so what does have Deep Silver to do with this?
Or were they independent and just had the game published by EA?

They are independent they were hoping Deep Silver would buy them out and solve their money issues.

Apparently, employees at Crytek UK, which is based in Nottingham, are hoping that Deep Silver (who publishes the Saints Row series) will purchase the studio and continue funding development of Homefront: The Revolution.

Do they not know how corporate business works? If they are going bankrupt Deep Silver is never going to buy them now (if it was ever), its far more cost effective to just wait for the studio to fall over, then sweep in and employee all the staff as they leave, buy up all the assets and form a new internal team made up of them.

The only reason to buy them now is if they wanted to keep the name Crytek for brand recognition. But given that when the company fails the the trademark/copyright is pretty much up for grabs too, they can probably get that too if put some effort in.

 

[iseko]

how the hell did they do that? The crytek games are very succesful are they not? To bad. They were a good studio. I'd hate to see them go.

 

[youji itami]

There's problems at Crytek's Shanghai studio as well now.

http://www.eurogamer.net/articles/2014-06-26-cryteks-ryse-2-canned-as-financial-struggle-spreads-to-shanghai

 

[-Dragmire-]

Apparently, employees at Crytek UK, which is based in Nottingham, are hoping that Deep Silver (who publishes the Saints Row series) will purchase the studio and continue funding development of Homefront: The Revolution.

Do they not know how corporate business works? If they are going bankrupt Deep Silver is never going to buy them now (if it was ever), its far more cost effective to just wait for the studio to fall over, then sweep in and employee all the staff as they leave, buy up all the assets and form a new internal team made up of them.

The only reason to buy them now is if they wanted to keep the name Crytek for brand recognition. But given that when the company fails the the trademark/copyright is pretty much up for grabs too, they can probably get that too if put some effort in.

That might be another reason to try to hide the fact that they are going bankrupt.

 

[Bertylicious]

how the hell did they do that? The crytek games are very succesful are they not? To bad. They were a good studio. I'd hate to see them go.

I thought that about THQ when they went to the wall, how can they go bust when they've made so much money?

It turns out that making games is really, really, really expensive. Everything from the licensing fees paid out to weapons manufacturers, musicians, car companies, city councils through to the hardware costs for the dev team. Not to mention the payroll cost of a company with hundreds of staff where the lowest paid permanent employee earns over £25k per annum.

That money is all loaned during the development period and the finance teams run around desperately bull-shitting creditors till the cash comes in from the game release, which gets used to pay off the debts from 2 to 5 years ago. It almost seems as if insolvency is inevitable for all games companies.

It doesn't matter though! The people are the main thing; they will go on in their careers to work for/found future companies that will continue to wow us.

Spoiler

 

[Metalrocks]

surprised about it really. i thought they are doing really well, especially sinice EA was publishing their games and even had all 3 crysis games on special on origin and last night i saw crysis 1 and 2 on special on steam. as a shooter it was alright, but i cant say it was really special besides very impressive graphics.

 

[Smooth Operator]

how the hell did they do that? The crytek games are very succesful are they not? To bad. They were a good studio. I'd hate to see them go.

The main studio has yes, but then they went and bought up like 10 new ones while financing some really horrid blockbuster games and now it seems all that bled them dry.
Hopefully they will only call quits on a couple of subsidiaries and not let the whole ship sink, but considering they are still unwilling to talk about any part of this problem could mean their denial continues and they will take the whole thing to it's bitter end.

 

[fix-the-spade]

Well that's the end of Crytek.

As for Deep Silver, I doubt it, they had success picking up THQ's survivors, but they also got a hold of mostly intact developers and mildly successful franchises for virtually free.

If Deep Silver does buy Crytek what does Crytek have? About sixty games using CryEngine that may or may not get published and obviously don't pay enough for the deal, a bunch of Russians paying nothing to play Warface and a half finished Homefront sequel nobody wants or cares about. EA will help itself to Crysis and Ryse (for what it's worth) is Microsoft's, so Deep Silver will be buying a name and some leases for the empty offices where the unpaid staff used to work.

I don't think so. If they choose to keep funding Homefront 2 at all it will be with someone else.

 

[Jandau]

Well, it's a crying shame this is happening, but there's no use crying over spilled milk. Facts need to be determined, as the accusations raised here are a real cryme. It would be truly saddening if true, as it would mean that the company is a far cry from its glory days. I wish the employees of Crytek the best of luck in this crysis.