Crytek Not Doing Well Might File bankruptcy

Over the weekend news got viral that Crytek is in problems. Crytek has been under constant scrutiny from the PC Gamers side after moving its Crysis series into consoles too but nevertheless it is a studio with great plans and innovation with visually stunning and a perfectly optimised engine (Cryengine).

But of late, things haven’t gone as planned and German videogames magazine “Gamestar” has reported that Crytek is in big trouble and has deemed positive that the studio may go bankrupt.

Let me first state that there is no backing to this story whatsoever, so it could be a false rumor. However if rumors come out this strongly, there often is truth to it somehow.

According to Gamestar, the adoption of CRYENGINE is not going well and the discussions and agreements at GDC was negative. Strangely enough, CRYENGINE is currently one of the most optimized engines (also critically acclaimed for its graphic fidelity) so Crytek should really look into its subscription prices, otherwise this amazing engine may be lost in the oblivion and be stashed away, never be used by another triple-A developers.

Other than that, Gamestar claims that the development of Ryse was catastrophic for the studio financially. Just mere months before its release, the game was severely behind and was lacking in development. Luckily Crytek was able to complete it with some additional manpower (costing them dearly). And from what we’ve seen thus far, Ryse hasn’t reached Crytek’s expectations in terms of copies sold (especially for a console exclusive). This clearly puts Crytek in a precarious state at the moment.

As a potential breather, Avni Yerli has claimed that a cash injection for the company is in place (with a contract to be signed really soon). Undeterred by the claim, a lot of big publishers are waiting for a possible bankruptcy in order to sign up talents and shop the IPs from Crytek.

For what it’s worth, Wargaming is listed as a most probable buyer of Crytek. If Wargaming does acquisit Crytek, it would be a fitting adios to all of the studio’s single-player games (as Wargaming is popularly known for its Free-To-Play games). In short, this would problably be the end of the Crytek we know and cherished.

But what has really happened and why is the team facing such financial issues? According to Yerli, there were “dramatized rumors” from disgruntled ex-employees which obviously had a negative impact to Crytek’s public image. Further adding to the burden, Crytek has more than 800 employees (a number so huge that explains the company’s possible financial issues). Moreover, Gamestar reported that most salaries were paid late and leading employees were busy sending applications to other studios at home and abroad in order to secure their future. As if that wasn’t enough, Warface was only successful in Russia and Crytek’s G-face platform was a huge flop.

In a nutshell, Crytek is currently in deep trouble and its highly doubtful that the studio can recover. Well all good things fo come to an end and Crytek will be a name to remember for its landmark in making one of the best possible game engines. Well most PC gamers will point out that Crytek’s move caused their downfall. 

Source tech4gamers. Do place your comments below!