Crytek to Close 5 Studios Following Reports of Financial Issues

[Lizzy Finnegan]

Crytek to Close 5 Studios Following Reports of Financial Issues

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Crytek closes five studios, leaving only Frankfurt and Kiev, following reports of pay issues.

Earlier this month, 2014 scandal [http://www.escapistmagazine.com/news/view/169019-Crytek-Studio-Black-Sea-Hasnt-Paid-Employees-For-3-Months] in which Crytek employees refused to go to work because they hadn't been paid in months.

While it still isn't immediately clear why Crytek was allegedly failing to pay employees, the company has announced [http://crytek.com/news/crytek-outlines-future-plans-and-focuses-on-return-to-core-competencies] today that it will be closing five of its studios, in Hungary, China, Turkey, South Korea, and Bulgaria, in order to "concentrate on development in its Frankfurt and Kiev studios and continue to develop and work on premium IPs." According to the announcement, "management has put plans into action to secure jobs and to ensure a smooth transition and stable future."

"Undergoing such transitions is far from easy, and we'd like to sincerely thank each and every staff member - past and present - for their hard work and commitment to Crytek. These changes are part of the essential steps we are taking to ensure Crytek is a healthy and sustainable business moving forward that can continue to attract and nurture our industry's top talent," said Crytek Co-Founder and Managing Director Avni Yerli. "The reasons for this have been communicated internally along the way. Our focus now lies entirely on the core strengths that have always defined Crytek - world-class developers, state-of-the-art technology and innovative game development, and we believe that going through this challenging process will make us a more agile, viable, and attractive studio, primed for future success."

In addition, the press release states that CryEngine will remain a "core pillar of Crytek's overall strategy."



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[fix-the-spade]

They've actually run completely out of money and credit this time, so everyone in a country that has little or no employee protection is now fired. I wonder how long before the creditors start rumbling into Frankfurt in those big 'ol black Mercedes so beloved of German businessmen.

 

[Callate]

As near as I can tell, they haven't released a game themselves since the PC version of Ryse: Son of Rome. Not being able to support over half a dozen studios on an engine license does not exactly come as a shock.

I quite like Crytek's engine, when it's used well, but it sounds like they need new management, not just a massive studio cut.

 

[JUMBO PALACE]

While it still isn't immediately clear why Crytek was allegedly failing to pay employees, the company has announced today that it will be closing five of its studios, in Hungary, China, Turkey, South Korea, and Bulgaria, in order to "concentrate on development in its Frankfurt and Kiev studios and continue to develop and work on premium IPs." According to the announcement, "management has put plans into action to secure jobs and to ensure a smooth transition and stable future."

There's the problem- Crytek overextended drastically. They don't put out enough games to justify operating 7 studios at once. You can't pay all of those people and all that rent just from engine licensing I'm sure.

 

[Alma Mare]

As near as I can tell, they haven't released a game themselves since the PC version of Ryse: Son of Rome. Not being able to support over half a dozen studios on an engine license does not exactly come as a shock.

I quite like Crytek's engine, when it's used well, but it sounds like they need new management, not just a massive studio cut.

Not quite

http://www.crytek.com/games

 

[Callate]

Not quite

http://www.crytek.com/games

I stand corrected. I didn't realize their VR game was self-developed, nor was I aware of their iPhone game's existence.

Still, everything else following Ryse is still in development, and a mobile game and a VR game aren't much to float seven studios.

 

[Arnoxthe1]

Hey guys, how about Timesplitters 4? Oh, you're too busy being assholes? Got it.

 

[Alma Mare]

Not quite

http://www.crytek.com/games

I stand corrected. I didn't realize their VR game was self-developed, nor was I aware of their iPhone game's existence.

Still, everything else following Ryse is still in development, and a mobile game and a VR game aren't much to float seven studios.

Just this year they did the Climb and Robinson: The Journey, both on VR. Also, you might notice the presence of a F2P FPS there. Those things tend to generate some cash.

Not to suggest their business plan made any sort of sense, but they certainly aren't as dead as the lack of a decent Crysis game in the last decade would have us believe.