Crytek Says It's in a "Transitional Phase," Responds to Reports of Financial Troubles

The developer of Crysis, Ryse, and the CryEngine releases a statement addressing reports that it's in trouble.

Crytek UK's in-development Homefront: The Revolution

Following a number of reports claiming that Crytek had canceled games and was losing staff after not paying them, the studio has shared an official statement with GameSpot addressing what's been happening and what its future holds.

Having filled in its employees "across all [its] studios" on its status, Crytek says it can now address the matter publicly. (Previously, it had either declined to comment or outright denied reports about any problems.) It describes itself as being being in a "transitional phase" and admits, "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."

Crytek says its "evolution from a development studio to an online publisher has required us to refocus our strategies." This shift required additional capital, which the company says it has now "secured." There had been reports that Crytek would be acquired by another company, such as World of Tanks developer Wargaming.

"Internally, we have acknowledged that the flow of information to employees has not been as good as it should have [been]."

"We can now concentrate on the long term strategic direction of Crytek and our core competencies," the statement continues. "We kindly ask for your understanding, that we won't be communicating further details about our developments and progress."

It did not address any specifics about where individual studios or projects stand, only saying, "We are confident that we will be able to share more positive news on Crytek's progress soon."

Ryse: Son of Rome

Reports had been circulating for some time that Crytek's various studios were in turmoil. Bonuses were reportedly withheld last year at Crytek UK (developer of the upcoming Homefront: The Revolution) and staff were not paid on time more than once. Multiple projects, including a sequel to the Xbox One-exclusive Ryse: Son of Rome (development of which was described by one source as a "disaster"), were said to have been canceled. Just recently, we learned that The Revolution game director Hasit Zala and a lead engineer, Tiago Sousa, had left the company.

Crytek is a German-based developer founded in 1999. In addition to developing games like Crysis and the original Far Cry, it's also responsible for the CryEngine game engine, which has been used in a number of non-Crytek games, including upcoming titles Evolve and Star Citizen. In recent years, the company has made an effort to be more forward-thinking; it's talked about how the future of console gaming is free-to-play, which it's gotten involved in with the release of free-to-play FPS Warface. It also launched its own online gaming platform, Gface.

We'll have more on the status of Crytek as this story continues to develop.

Crytek's full statement:

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.

Chris Pereira is a freelance writer for GameSpot, and you can follow him on Twitter @TheSmokingManX
Got a news tip or want to contact us directly? Email news@gamespot.com

Written By

Twitter/Xbox Live/PSN/Nintendo Network: TheSmokingManX

Discussion

98 comments
AyatollaofRnR
AyatollaofRnR

In this topic PC gamers get mad that Crytek made games for consoles, because if a game is on console it must be bad. PC Master Race!



Martyr77
Martyr77

Crytek focuses on graphics not story or great gameplay. That is why they are failing.

edeep87
edeep87

Make crysis 4 with psycho as the main character PC ONLY !!!! you'll see big changes !!! and ohhh yeah dump microsoft with their exclusivity bullshit !

snacky_smorez
snacky_smorez

Transitioning to out of business. That's never something that's good.

R4gn4r0k
R4gn4r0k

Crytek, since you say flow of information is imported I would like to know the following things:


Do you still stand by your "free to play is the future" claim ?

And, most importantly of all, why did you not cancel Ryse ?

Master_Turismo
Master_Turismo

I hate to say it but Cretek didn't transition well on consoles. Crysis was their last good game they made. After that . . . I just pretended they didn't exist. And making console exclusive titles was the worst mistake they have made thus far in my opinion. Either go back to PC related gaming or make games that transition well for the market.

frozenuxx
frozenuxx

If you don't belong to MS, Sony or Nintendo, it makes no sense business wise as a dev to make exclusives(well unless they are timed), the cost of opportunity is just too damn high.

GOGOHeadray
GOGOHeadray

So did their concentration on pushing graphics over game-play lead to this downfall? ryse was a complete disaster game-play wise and sales wise so it looks to be some correlation their.

sonyonly4
sonyonly4

So Basically what they are saying is they are not in trouble they just would appreciate any food stamps you can throw them for "Research and Development" and Ryse will not be returning and so we should reward them for that.

neowarrior793
neowarrior793

now don't get me wrong the games they make are beautiful, graphically i can't fault the games like crysis, 2 and even yes that horrid ryse game when it comes to detail and realism but i feel this is a good thing. they should focus less on games and more on the engine which is the only real contender to unreals engine, id rather have these ip's get split to other better companies who can make the most out of them while still retaining thoes beautiful graphics from crytek.    

rmiller365
rmiller365

So I guess Ryse was the Fall of Crytek...

Sl4cka
Sl4cka

"Internally, we have acknowledged that the flow of information to employees has not been as good as it should have"

How about the flow of money?


"These challenges go along with an increased demand for capital which we have secured."

By withholding salaries from your employees?

spacecadet25
spacecadet25

Pfff, that statement didn't convince me that they are doing fine.  If they really want to demonstrate how financially stable they are then they should publish at least statement of income/expenses and a balance sheet.

Darkhol0w
Darkhol0w

Irony here is that Crysis 1 (PC only) is still their best selling game.

They should of stuck to that platform and not try and get in bed with consoles with their sequels (I know this sounds harsh but it's the truth at least in Crytek's case).

Their most known game was a game that benchmarked PC hardware for years since it was released.

demondogx
demondogx

Any studio that sells out for some quick cash to release to one specific hardware deserves what they get

Games should be made available to as mutch gamers as possible and gamers shouldent be punished for prefering a specific piece of hardware

shaikanita
shaikanita

@AyatollaofRnR Actually no, here everyone looks at Crytek falling apart after their latest games being shit

mlp071
mlp071

@Martyr77 

That is correct in a way . Original Far Cry and Crysis 1 were benchmarking standards for their time , and when Crytek got greedy and focused on consoles they nerfed that engine and lost lot of followers as the results were terrible (specially with Crysis 2)


Some of the arrogant statements from the CEO at same time about PC gaming being waste of time for them didn't help either.

R4gn4r0k
R4gn4r0k

@frozenuxx


Sure it does, when you project is financed by Sony, MS or Nintendo you make an exclusive, even if you are a third party dev.

sonyonly4
sonyonly4

@neowarrior793 Crysis is just a watered down Halo, Ryse is just a watered down God of War so Sony and Microsoft shouldn't be interested maybe give them both to the Wii U since it is lack anything like either of those games?

Iemander
Iemander

@rmiller365 Everything that is not Crysis 1 PC only release, was the fall of Crytek.

ji-high
ji-high

@Sl4cka Yeah because you obviously get the whole picture by picking two sentences in a PR statement.....

neowarrior793
neowarrior793

@sonyonly4 @neowarrior793 "Crysis is just a watered down Halo" what? halo came out back in 2001 while crysis came out in 2007 that time difference already proves they're nothing alike. if you wanted to make a clone of a game it would take a year maybe 2 at most. and ryse is nothing like god of war one is about gods for crying out load and again have massive time differences to release. 

Deadlysyns87
Deadlysyns87

@Iemander @rmiller365 Sure it was the best selling game years after its Release but it was likely sold for 10 bucks which means they didn't make very much money off of it. Most sold on PC doesn't mean they made a lot of money off of it.

Sl4cka
Sl4cka

@ji-high Like you said, it's PR. Even if I didn't know a single thing about the situation, company or employees, the statement would still be full of shi.t.

Deadlysyns87
Deadlysyns87

@lonesamurai1 @Darkhol0w Piracy's Fault not Cryteks they refused to release exclusive games because Crysis led the Piracy List on PC games you have no one to blame but yourself for less and less PC Exclusives guys.

sonyonly4
sonyonly4

@neowarrior793 @sonyonly4 Crysis guy = Fake Master chied with Crysis 2 having Fake elites......

Ryse is a blatant rip off of God of war it even has a God of the underworld LOL and their are comparisons on Youtube almost scene for scene rip off......

Lets face it Crytek only make good graphics their games are rip offs off the biggest games out nothing more then trying to cash in on other success.

Crysis is probably the most overrated franchise of all time tries to be Halo but it can never reach that level apart from with the PC Master irrelevant who try to make us all believe it is 100x better then anything on the consoles because they had to shell out for a new rig just to play the damn game back in the day.

Iemander
Iemander

@Deadlysyns87 @Iemander @rmiller365 On the contrary, it made a million sales very soon after release at full price. And the return value was much higher because no fees had to be paid to any console manufacturer.

neowarrior793
neowarrior793

@sonyonly4 @neowarrior793 there a reason why crysis games have become the benchmark for testing gpu's its because graphically its amazing and that already one thing that makes it better then halo (thats if i wanted to get into a pointless argument with you) the fact is your incompetence of understanding that its universally accepted as a good game is the real problem here (not which game is better). 

even people who support sony acknowledges ryse is graphically good. this has gone past the games to you and how bad you are at even acknowledging thing in front of your face. 

Deadlysyns87
Deadlysyns87

@Iemander @Deadlysyns87 @rmiller365 it wasn't making much of a profit till a year after its release and it didn't become one of the bestselling games until 2010 so i doubt it made as much as you guys claim

Iemander
Iemander

@Deadlysyns87 @Iemander @rmiller365 Don't try inventing things, it made more than double it's costs in profit after 2 months when it broke 1 million sales.

lonesamurai1
lonesamurai1

@GOGOHeadray @lonesamurai1 @Deadlysyns87 @Darkhol0w Sure I can, because the passion gets lost and the need to make money is all that matters when making console games and when that happens you can expect a marginal title especially when making FPS titles with are waaaay better on PC.

lonesamurai1
lonesamurai1

@Deadlysyns87 @lonesamurai1 @Darkhol0w  Then it proved to be their undoing didn't it because after they jumped on the console bandwagon none of their games were even worth the time for thieves to pirate because they became pure crap. 

FPS development on consoles is a losing proposition because they all suck. The 2 original Crysis games were 9.5 to 10.0 scoring affairs they took a sharp dive when consoles were included.

Deadlysyns87
Deadlysyns87

@Iemander Some of that Money went to EA some to Steam etc i doubt it all went to Crytek the fact is PC users Pirate to much and thats why Crytek will never release another PC exclusive.

GOGOHeadray
GOGOHeadray

@lonesamurai1 @GOGOHeadray @Deadlysyns87 @Darkhol0w How does that make sense? So are you saying that console developers don't have any passion for the games they are making? If that's the case then why was games such as Ni no kuni, and the last of us so well received and that was just last year? These developers whether they are on console or PC are out to make money unless those PC games are being given away for free and PC developers are working for the passion of making games; in other words for free.

lonesamurai1
lonesamurai1

@GOGOHeadray @lonesamurai1 @Deadlysyns87 @Darkhol0w Consoles started the unfortunate business of DLC and nickle and diming of customers, On PC there was value and it was called an expansion pack and all of the little bits of DLC that you buy today individually would be rolled into the expansion pack for $10 to $15 but now when a person buys all of that on an individual basis he/she may pay $25 to $30 or more.


All that consoles manage to do today is cause a developers eyes to contract the terrible disease which has just one distinguishable symptom dollar signs instead of pupils.

Deadlysyns87
Deadlysyns87

@Thanatos2k @Deadlysyns87 @Iemander  I doubt it made the money everyone claims it did at least for Crytek. Also the second part is True Crytek stopped making PC exclusives because of piracy problems. A lot of what it made in the first year would be split between EA and Crytek so lets say it made 60 mil minus the costs to make it you have 38 mil split that in half and you only have 19 mil made between both companies. Thats not even enough to fund the game again. Let alone a second one.

yumyumnomnom
yumyumnomnom

@Deadlysyns87 it's kinda how all you guys think you know the financial info on how much who made. guess you were definitely employed at Crytek and EA.

Deadlysyns87
Deadlysyns87

@yumyumnomnom @Deadlysyns87 No but the Game sold 1 million copies combine that with the regular price of say 60 bucks that's 60 mill subtract the 22 mill to make the game that leaves you with 38 mill. If the money isn't split 50/50 that's still not a lot of money, It wasn't enough to make them overlook the Piracy issues and change their stance on No more Exclusives for PC.

yumyumnomnom
yumyumnomnom

@Deadlysyns87 it's kinda funny how all you guys think you know the financial info on how much who made. guess you were definitely employed at Crytek and EA.

turbojugend16
turbojugend16

@Deadlysyns87 No more exclusives for PC, just cr@ppy console garbage LOL I'm glad they're in trouble, since they started developing for inferior hardware.