My point exactly

You are speaking about the studio, but the game engine "Crytek Engine" is sold to other studio who work with it.. and the appliance of it is large, from MMO to FPS, RPG to strategy games.. The problem i see is they directly enter in competion with other studio who have too their own engine, Frostbyte etc. .. If every EA games was developped with Crytek engine, this will surely be different. But today most are with the Frostbyte engine. Then it is allways hard to really know what happend, maybe their games have not sell as they was intend, but enough for dont kill the studio. So there's surely something else behind it.

They have a good engine but others have too. And because of their dev tools lack the ones of others, its difficult to get it licensed to others. What comes to the amount of licensees, what you say is not true. They just dont have enough licensees. And because they have failed to make great games themselves, they have problems getting money anywhere. If Crysis was successful, they would have another source of income as a backup. But its not successful. Far Cry was very successful and unfortunately they sold that success away, used the money to create a great engine but forgot the content which made Far Cry great and selling well. Their next idea, Crysis, was/is a lame idea to begin with and it just doesn't sell or even gather much interested. Btw, Far Cry is still doing great and have evolved to be one of the best game series there is in the genre.

http://www.pcgamer.com/uk/2014/07/30/crytek-u-k-is-closing-down-following-homefront-sale-while-austin-studio-suffers-layoffs/ http://www.pcgamer.com/uk/2014/07/30/deep-silver-acquires-homefront-from-crytek-sequel-development-to-continue-at-new-studio/