Crytek claims its future is secure

July 28, 2014 // 11:34 a.m.

Tags: #bankruptcy #cryengine #crysis #crytek #financial

Troubled games specialist Crytek has spoken publicly about its financial problems for the first time, claiming that much-needed additional capital has been secured.

Crytek, best known for CryEngine and its Crysis franchise, is a company undergoing a complete paradigm shift. In 2012, it announced plans to release all future titles as free-to-play, and earlier this year announced Linux support and the launch of a subscription-based licence for CryEngine for games developers on a tighter budget.

Over the past few months, reports coming out of the company have suggested the transition isn't going well. Crytek has been claimed to be on the verge of bankruptcy, with staff going unpaid for months at a time. Its deal for a sequel to the Xbox One exclusive Ryse has fallen apart, and key staff have been jumping ship. Throughout, Crytek itself has remained silent; a decision that has not helped stem concern about the company's future.

A Crytek spokesperson has finally broken the company's silence, sending a statement to GamesIndustry that claims all has been resolved. '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,' the statement reads. '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.

'[i]We can now concentrate on the long term strategic direction of Crytek and our core competencies,
' the statement continues. 'Ultimately, with our organisation, capitalisation, portfolio and technologies we have now laid the foundations for securing Crytek's future - not just in the short term, but also long term.'

Crytek has indicated that no more statements on the matter are to be forthcoming, stating 'we kindly ask for your understanding that we won't be communicating further details about our developments and progress.'

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