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Crytek speaks about its financial woes, manages to explain little
Crytek speaks about its financial woes, manages to explain little
July 25, 2014 | By Alex Wawro




Late last month we published troublesome reports that Crytek was losing staff and failing to meet payroll.

Today, Crytek representatives finally released a public statement to GamesBeat acknowledging the reports and seeking to cast them as the result of internal miscommunication as the company sought additional funding, which it claims to have now secured.

Crytek blames its troubles on the company's (relatively) recent decisions to move beyond being a AAA game developer and engine maker to chase mobile development and the F2P online shooter market.

Gamasutra has reached out to Crytek for confirmation, and we'll update this story with any meaningful new information. As always, if you or someone you know has been affected by this situation, you can email Gamasutra to tell your story confidentially.

We've taken the liberty of reprinting Crytek's most recent public statement to GamesBeat 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."


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Comments


Ron Dippold
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Yeah, doesn't explain much. Are they going to continue to bet the company on F2P? It's vaguely implied by the third paragraph.

Troy Walker
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..."Crytek blames its troubles on the company's (relatively) recent decisions to move beyond ..."

The obvious answer is that they were late to the party... kind stinks. But when you get wrapped up in doing the same thing year after year with blinders on you end up finding the path you've trudged is a dusty circle.

I hope they can pull themselves out, was pretty cool technology... but chasing the mobile rainbow is a failure for many, with very few golden pots.

My suggestion would be to scale back to when you did well, and try to find the "next" big thing.

scanner barkly
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Late to the party with a terrible product. Warface is, frankly, terrible.

Rodolfo Rosini
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Probably they secured a convertible note as bridge financing to get to a point where they can get more funding. This would mean that the creditor is first in line in case of a bankruptcy and also they don't really have enough funding to be viable in the long term unless they restructure* the company. Still, wish them the very best.

* in this case not necessarily layoffs


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