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Post by KostaAndreadis @ 04:00pm 14/12/16 | 4 Comments
Crytek has once again in a bit of financial trouble with word coming out that employees haven't been paid for months. And that dating all the way back to May this year, payments have been delayed by up to four weeks. The news echoes similar reports from a few years ago when the company was seen as being in a transitional phase. According to sources, word has it that Crytek is simply out of money and that a rescue plan and new deals are taking a lot longer than expected.

After the most recent financial woes for the development studio and maker of 3D engines, it sold off Homefront developer Crytek UK to Deep Silver. The late employee payments at the time were defended by the company as being one the only measures it could take to avoid insolvency.

In recent times the studio has shifted its focus to VR offerings like Robinson: The Journey and The Climb. But as with pretty much all VR games today, there's very little money to be made outside of content arrangements with hardware manufacturers.

The recent financial troubles have put its current development portfolio into doubt, in addition to its employees' futures. Now, late payments to employees without an official response from an employer can and should be taken with a grain of salt. So, we'll wait and see how this all pans out. But even so, its hard to ignore how hard this situation can be on employees and their families.

Sources: Eurogamer, Reddit, Polygon

crytekfinancial trouble

Latest Comments
Posted 06:09pm 14/12/16
Oh dear, not paying employees is a d*** move.
Maybe I should get around to buying crisis 3.
Posted 06:35pm 14/12/16
Lol while not getting paid is a serious issue for Crytek's employees, obviously none of us understand what is really going on.
This probably IS NOT as simple as 7Eleven not paying or grossly underpaying Indian students.

You don't know if they came to an agreement with their workforce to delay payment until the companies financial situation has improved.
You also don't know the ins and outs of their employee awards and benefits...this isn't Australia, remember.
Furthermore, you sound like you just assume Crytek COULD pay them and has just withheld payment for a laugh. If they can't afford to pay them but they choose to do "the right thing" by the employees, then the company would most likely enter administration shortly thereafter, a situation where no one is a winner.
However, if they come to an agreement where employee payments are withheld until they release some new IP or product and start getting cashflow, then this would make more sense as a mid-term strategy.
Posted 09:25pm 14/12/16
CIG must be looking forward to hiring more ex-Crytek employees.
Posted 04:58pm 15/12/16
No doubt apocalyptic press like this will only help their situation, whatever it is. Shame to hear, Crytek is still one of the best engines I've ever seen, more peeps should use it for their games.
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