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Crytek denies bankruptcy and buyout rumours

Crytek denies bankruptcy and buyout rumours

Crytek has denied media reports that it is near-bankruptcy and relying on a buyout by Wargaming or an unnamed Chinese company to keep the company afloat.

Crytek has denied reports that it is on the verge of bankruptcy, even as anonymous sources claiming to be current staff at the company complain of missed paydays and mismanagement.

Best known for the Crysis family of games and the related CryEngine game engine, Crytek has recently been looking to take on Epic's Unreal Engine in a major way. Recently, the company promised the engine would be ported to Linux while offering a subscription-based licence that allows hobbyists and indie developers easier access to the software. The latter is hard to interpret as anything other than a response to Epic doing the same two months earlier. Prior to that, Crytek announced in 2012 that all its future first-party titles would be free-to-play, a major model shift.

The company is reportedly struggling to keep its finances in order, however. A report on the German site GameStar has been spotted and translated by Eurogamer, and makes some strong claims: that the company is close to bankruptcy, its staff are being poached by other game developers, and the future of the company rests on a buyout offer from World of Tanks maker Wargaming or an unnamed Chinese firm.

Eurogamer's research goes still further, quoting anonymous sources claimed to be current employees in Bulgaria who state that they have not been paid in the last two months while others from the company's UK arm suggest that payments have been delayed as a result of mismanagement.

'Regardless of what some media are reporting, mostly based on a recent article published by GameStar, the information in those reports and in the GameStar article itself are rumours which Crytek deny' the company told Eurogamer in a statement on the matter which fails to address the apparent disgruntlement of its employees and missing salaries.

4 Comments

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RedFlames 24th June 2014, 14:51 Quote
Quote:
Crysis has recently been looking to take on Epic's Unreal Engine in a major way.

Think that should be 'Crytek' [or possibly CryEngine]...

Some of the rumour mill articles elsewhere seem to think Crytek's predicament, if it is indeed in one, is due to low take-up of CryEngine...
Gareth Halfacree 24th June 2014, 15:02 Quote
Quote:
Originally Posted by RedFlames
Think that should be 'Crytek'
Yes, yes it should. And companies should not have product names so similar to the damn company name, 'cos I'm easily confused. I'll go fix it, ta!
rollo 24th June 2014, 16:20 Quote
No smoke without fire is the way I'd put it. Would come as a huge suprise though.
fix-the-spade 24th June 2014, 23:14 Quote
Quote:
Originally Posted by rollo
No smoke without fire is the way I'd put it. Would come as a huge suprise though.

After Ryse it's not entirely implausible, I suppose it depends on how much of the money Microsoft provided for that project and what affect it's had on future projects. Also whether or not all those Russians playing Warface are actually spending any money or not.
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