Crytek Once Again Insists That Its Finances Are Secure

crytek-logoOver the last few weeks, we’ve had a few reports about developer Crytek going through serious financial trouble that has resulted in the company missing paycheques and senior staff leaving the company.

After far too much silence on the matter, Crytek has finally come out with an official statement that indicates that their current financial situation has been stabilized.

Here is Crytek’s statement in full (emphasis added):

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.

As my previous business analysis had concluded, Crytek claims that the switch from being a developer working on products for publishers as an independent studio to self-publishing free-to-play games has left them short on cash. Considering they went from receiving funding to make games to self-funding would put a strain on most companies.

The claim that they recently came into some cash (termed “capital” in the statement) isn’t a huge surprise since reports indicated that they needed it. Rumours suggested that Deep Silver was most likely to give them a cash injection to ensure the completion of Homefront: Revolution.

This announcement was preceded by a report that employees at Crytek UK were paid their back wages. The situation at Crytek UK was so bad that staff were walking out and handing in grievance letters over unpaid wages while senior staff were looking for new jobs.

So it’s good news for Crytek but it doesn’t sound so overwhelmingly positive that it sounds like they’re completely out of the woods. It seems as though they’re still working on this transition to being a high-quality free-to-play studio. Once they get some successful releases out, we can all feel confident about the future of Crytek. For now, let’s see what the future brings from Crytek.

Source: MCV UK, Kotaku


About Steve Murray

Steve is the founder and editor of The Lowdown Blog and et geekera. On The Lowdown Blog, he often writes about motorsports, hockey, politics and pop culture. Over on et geekera, Steve writes about geek interests and lifestyle. Steve is on Twitter at @TheSteveMurray.

Posted on July 29, 2014, in Games and tagged , . Bookmark the permalink. Leave a comment.

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