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Crytek closes 5 studios amid financial issues

Crytek closes 5 studios amid financial issues

Crytek has reportedly not paid some employees for over 3 months

Crytek closes 5 studios amid financial issues

 
Crytek has announced today that they will be closing five of their game development studios, with plans to refocus the company's efforts on CryEngine and the development of premium IPs.
 
This means that Crytek will be closing their studios in Hungary, Bulgaria, South Korea, China and Turkey to concentrate development on their Frankfurt and Kiev studios. Right now it looks like the company will be selling these studios off to other publishers, with hopes to secure jobs for their existing developers as they transition to different management. 
 

Over the past few years, Crytek has been having some huge financial issues, with Crytek selling Crytek UK to Deep Silver back in 2014 and significantly lowering their US presence after a long period of financial difficulties, which left a large number of developers unpaid for several months

While Crytek was able to get past these previous financial issues, it looks like the company is now back in the red, finding it difficult to pay developers in all of Crytek's divisions due to the simple fact that the company has failed to make a profit for several years. 

Crytek has had some recent successes licencing their CryEngine game engine for use in Amazon's Lumberyard game engine and in Film Engine, a movie production will which allows directors to see rendered scenes in real-time. Now it seems that these successes have not generated enough revenue for Crytek to continue running smoothly. 

Below is a statement from Crytek's Co-Founder and Managing Director Avni Yerli, who states that Crytek wants to focus on its core strengths, which is the development of game technology, with plans to make the company sustainable moving forward.  

 

   Undergoing such transitions is far from easy, and we’d like to sincerely thank each and every staff member – past and present – for their hard work and commitment to Crytek.

These changes are part of the essential steps we are taking to ensure Crytek is a healthy and sustainable business moving forward that can continue to attract and nurture our industry’s top talent.

The reasons for this have been communicated internally along the way. Our focus now lies entirely on the core strengths that have always defined Crytek – world-class developers, state-of-the-art technology and innovative game development, and we believe that going through this challenging process will make us a more agile, viable, and attractive studio, primed for future success.

 

Crytek has reportedly not paid some employees for over 3 months

 

This is going to change things dramatically for Crytek as they make this transition, which plans to focus the companies efforts towards creating great products for video game developers and their licensees and focusing on their premium IPs. 

While it is very sad to see Crytek closing so many of their studios, it is worth noting that these studios have not released many games to the market in recent years and have not given the company a great return on their investment in recent years. 

All we can hope for at this point is that Crytek's former studios can thrive under new management and that Crytek itself can become successful moving forward with their new internal focus. 

 

You can join the discussion on Crytek closing five game studios on the OC3D Forums.

 

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Most Recent Comments

20-12-2016, 13:12:39

NeverBackDown
I really hope those devs can keep there jobs after being bought out. Very unfortunateQuote

22-12-2016, 15:37:02

darnn
Damn that's bad news, however maybe that is what they need to really restart company and development process. I am big fan of Crysis series and had some good time with original Far Cry so I sincerly hope they will be able to recover from troubles and do what they are best at = futuristic damn epic looking fps games.Quote

23-12-2016, 10:38:34

AngryGoldfish
Didn't AMD get into bed with Crytek earlier this year with future big plans together?Quote
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