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Crytek admits to financial difficulty, says long term future secured

Crytek has released a statement to GI.Biz confirming that the company has been going through some financial problems. The publisher and developer though says that its short and long term future is now secured and that it has gone through a tough transition period. “Like the games industry as a whole, Crytek has been in a transitional phase,” reads the statement from Crytek. “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.” It goes one to state:

“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.”

Reports from Kotaku also reveal that the company has begun to pay staff at Crytek UK again, with staff having gone since March without a paycheck according to sources. However, the developer has seen the departure of key members of staff such as Hasit Zala and Karl Hilton along with a large number of other staff.  These walk-outs may have caused irreparable damage to the Nottingham based developer.

Rumors surfaced last month that Crytek were in financial difficulty. A number of reports suggested that staff had gone without pay for months and that several projects, such as Ryse 2, had been cancelled amid the trouble. An industry insider even spoke about how Crytek could soon be acquired by Sony. Although the company initially denied the rumors, it now appears that there may have been some truth to them after all.

 

About Nathan Gibson

Freelance writer with a love for gaming. Have owned pretty much every console and handheld from the last 15 years. When I'm not writing about games, which I am most of the time, I tend to be reading, writing about sport, binge watching shows on Netflix...or playing the odd video game.

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