Crytek admits to financial problems, releases statement25 Jul 2014
In a statement that could probably stand in for the word “vague” in the dictionary, Crytek has finally addressed some of the stories of financial woe emanating from their company. Report of unpaid employees across Crytek studios and internal management chaos have been popping up for the past few weeks.
This has resulted in concerns over Crytek’s future, its studios and the fate of games like Homefront 2. In a statement made to GamesIndustry.biz, the company sort of vaguely addresses this by using a lot of words to not say very much. Here’s what they’ve managed to run past their legal team for publication:
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.
Wow, that’s a lot of corporate fluff. Let’s try to figure out what some of it might mean, shall we? An admission that “the flow of information” to employees hasn’t been great is nice, but they’d probably have preferred an update on the “flow of owed wages.” If I worked anywhere near Crytek I’d also be getting the fear at seeing the term “transitional phase” because we all know that means “people losing their jobs.”
“Challenges” requiring an “increased demand for capital” is as close as this piece comes to admitting that the company has (or had) some major money issues. Capital, we’re told, has now been “secured,” but there are no details of where from, how much, or if that means Crytek has had to sell part or all of itself to cover debts.
According to a new Kotaku report, Crytek UK is at least reporting that employees are starting to be paid again. That would appear to confirm Crytek’s claim of securing additional funding for at least the short term.Related to this story