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Crytek misses payroll for months - Report

Crytek misses payroll for months - Report

Mon 23 Jun 2014 5:39pm GMT / 1:39pm EDT / 10:39am PDT
BusinessDevelopment

Rumors spread of issues at Bulgarian, UK offices; company denies being near bankruptcy

Crytek may be enduring some financial difficulties of late, as Eurogamer reports that the developer has missed payroll at both its Bulgarian and UK offices recently.

That report followed an article on German outlet GameStar, which claimed the developer was on the brink of bankruptcy. It cited a source with a large publisher as saying "the vultures are circling," and rival companies have begun attempts to poach the studio's best talent.

However, the report also said Crytek co-founder Avni Yerli admitted earlier this month that the studio's transition to free-to-play games had been difficult, but claimed the studio was also on the verge of securing new financing. GameStar suggested an acquisition from World of Tanks publisher Wargaming was a possibility, but Eurogamer said the company may be entertaining an investment from a Chinese outfit instead.

Eurogamer reported that staff at Crytek's Sofia studio in Bulgaria hadn't been paid for two months. Meanwhile, Crytek UK, which just recently unveiled Homefront: The Revolution, failed to pay employees on time. The site added that staff have been upset by what they see as a lack of transparency from management over those issues.

A Crytek representative denied the claims to Eurogamer, saying, "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 rumors which Crytek deny."

7 Comments

Adam Campbell Associate Producer, Miniclip Ltd

1,184 979 0.8
I thought they were one of the rising super powers of European games development. If this is true, I'm quite shocked. Can't imagine what it must be like for the staff.

Posted:4 months ago

#1

Steve Wetz Reviewer/Assistant Editor, Gamer's Glance

213 529 2.5
Popular Comment
If you look at their most recent titles, this isn't very surprising. Neither Crysis 3 nor Ryse did particularly well (Ryse was a casualty both of poor reviews and the small install base of the Xbox One, being a launch title). Crytek may be due some restructuring, in any case. This is not a studio which churns out the number of successful titles that it's number of offices suggests.

Posted:4 months ago

#2

Chris Hoopes Programmer & Game Designer, Ghost Crab Games

1 0 0.0
Crytek has been growing like mad over the past two years, this is really kinda surprising. They have what, four or five different games in development right now from their various studios?

Posted:4 months ago

#3

Nicholas Pantazis Senior Editor, VGChartz Ltd

1,020 1,467 1.4
I hope this is wrong for the sake of the staff, and if it's true I wish the staff the best of luck in getting through a rocky time.

Posted:4 months ago

#4

Metodi Chukovski Managing Director, AD4Real

2 0 0.0
Best of luck to the staff of Crytek. Regarding Warface, it depends of the agreement between Crytek and Mail.ru, because if the russian company takes 60-70% from the revenue, then the success of the game is mainly for them. Fingers crossed.

Posted:4 months ago

#5

Paul Jace Merchandiser

942 1,428 1.5
@Tim--I was also wondering about Warface as I've heard it's quite successul for them. I'm played the 360 version and it was ok but the controls weren't tight enough for my taste. But there never seems to be a shortage of players in the lobbies so it has to be successful on atleast some levels. Anyway, I'm sure Crytek will get things back on track soon enough.

Posted:4 months ago

#6

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