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It's not long ago that Crytek was widely considered as good guys in the industry. They had a rock-solid reputation for creating high-quality games like Far Cry and Crysis, and their technology was a step ahead of the competition as CryEngine provided gamers with the best visuals for the time. To further cement their legacy as heroes they went on to save a studio like Free Radical Design from closure (labelling it Crytek UK) and later they would do the same for the remains of Vigil Games (which got turned into Crytek USA). Other studios were picked up or started in various spots in the world, but somewhere along the way, it would seem Crytek lost the plot. Maybe it was a case of overextending themselves, losing focus, or a mix of the two, but much has changed over the last few years, and with the revelation of the lawsuit against former partners Cloud Imperium Games many game developers have openly criticised the company via social media. Recently, we also learned that they've partnered with something called Crycash, dubbed a cryptocurrency for gamers, but given that key individuals from Crytek serve on the advisory board there's reason to believe the ties are closer than the word partnership would suggest.

Crysis 3 was released in February 2013. It's the most recent AAA project to come out of the studio and, famously, founder Cevat Yerli had announced prior that the studio would be focusing solely on free-to-play (their first effort in this space, Warface, had begun its roll-out at this point in time) moving forward, alongside their engine business. Their UK dev studio (formerly Free Radical Designs) were in a precarious situation as the publisher on Homefront: The Revolution, THQ, had filed for bankruptcy, but the good news was that Crytek had secured the Homefront IP in the subsequent auction. The problem now was that Crytek wanted to transform the game as they had gained full creative control. Meanwhile, as no one had picked up Vigil Games and their just launched new development project in the THQ auction, Crytek also dived in to save what remained of that studio to form Crytek USA. At this point in time, although there was some concern over Crytek's insisting on going completely free-to-play, the company was largely seen as heroes in the gaming world. They'd saved two highly respected studios and had lots of projects underway.

Crysis 3 was released in 2013.

Crytek USA's project, Hunt: Horrors of the Gilded Age, was first shown at E3 in 2014 and it was just around this time that Crytek was hit with the first wave of financial troubles. We remember the somewhat odd mood at the booth this year, with some people putting on brave faces trying to be accommodating, while others seemed to be in a foul mood. Deep Silver had stepped in as publishers of Homefront: The Revolution and would later acquire the IP and studio from Crytek. But trouble at Crytek UK (now known as Dambuster) with missing salaries meant talent left the studio. Crytek USA was soon cut loose too (they would instead form Gunfire Games).

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A deal between Amazon and Crytek in early 2015 seemingly saved the company from bankruptcy. The deal allegedly worth somewhere in the range of $50-70 million saw Amazon use CryEngine to build their own Amazon Lumberyard engine. However, it's hard to say how much of that was delivered upfront and how much is ongoing payments and royalties. It's also difficult to estimate how much in debt Crytek was in at that point; given the size of the company at its biggest, the burn rate must have been very high. It was announced a little later in the year that Cloud Imperium Games, who had licensed CryEngine for use with Star Citizen, would open a new branch of their Foundry 42 studio in Frankfurt, employing some of the tech talents behind the inner workings of CryEngine. Perhaps a prelude to what was about to happen later.

Meanwhile, the number of big games making use of the engine has dwindled, with Prey and Sniper: Ghost Warrior 3 being the only really notable releases using the engine in 2017. Before that it was Evolve and Everybody's Gone to the Rapture in 2015, and Homefront: The Revolution in 2016. The one big project set for 2018 (apart from Crytek's own Hunt: Showdown) is Warhorse Studios' Kingdom Come: Deliverance. A number of smaller projects make use of the engine, but it's difficult to imagine that this business generates enough income at this point given the big investments needed in order to keep up with the competition (Unreal Engine and Unity primarily). Losing Star Citizen in late 2016 was a big blow, not only in terms of publicity but also in terms of potential royalties and payments down the line. Ironically, Crytek lost that game (or games if you will) to Amazon Lumberyard, the engine that's based on their own tech.

It was clear that Crytek was in need of capital even with the Amazon deal secured and some of that money was to be found in VR, at least in the short-term. Not a dumb move considering CryEngine had to support the new tech going forward to future-proof it, so signing on for a couple of projects with Oculus and Sony made sense. The Climb and Robinson: The Journey was released to mixed reviews in 2016, later arriving on competing platforms. How these projects were affected by the turmoil at the company during their development is difficult to assess, but needless to say the fanbase they had built with Far Cry and the Crysis games likely felt left behind by the new direction for the studio.

The second wave of studio closures happened in late 2016 when studios in Hungary, Bulgaria, South Korea, China, and Turkey were shut down. The Bulgarian studio was later sold to Sega and renamed Creative Assembly Sofia. It may sound like a lot, but some of these studios were relatively small and the move served to centralise the company. A statement at the time put a brave face on events and said the company would now "refocus on its core strengths of developing innovative games and game-development technology" at the remaining studios in Kiev and Frankfurt.

Glassdoor is a popular workplace review site where employees can review their employer anonymously on a voluntary basis. While reviews there should be taken with a grain of salt, if you look at the greater body of reviews posted on Crytek (125 to date with a 2/5 average rating), there is one thing that stands out. Negative opinions on the top management. Most reviews are actually very complimentary of the workforce as a whole, but communication from management and their ability lead seems to be an overwhelmingly common point of criticism.

Squadron 42 is the standalone solo campaign of Star Citizen is at the core of the legal action Crytek recently took.

Of course, when a company finds itself in financial trouble it is no surprise that the employees are questioning the leadership. When people aren't paid on time there's going to be trouble, and more alarmingly for Crytek longterm, you're also going to lose talent as a result.

As for the legal case, it's hard to make any judgement on its merit without hearing both sides as we're sure Cloud Imperium Games are preparing to launch counter-arguments of their own aimed at Crytek.

Crytek makes a few points, namely that CIG signed an exclusive agreement to develop Star Citizen using CryEngine (something that's clearly not been honoured as they've switched engines), they also claim that the standalone Squadron 42 was marketed and sold (pre-order) as a CryEngine game when in fact their agreement didn't cover the second title. There are further complaints with regards to feedback, bug fixes, and displaying logos prominently. It paints a picture of a complete breakdown in the relations between the two companies. Crytek seeks $75,000 in direct damages, but much of the document (check it out on Scribd) focuses on the substantial crowdfunds CIG have collected, and it is clear Crytek are out to get a cut of that tasty $150+ million dollar pie.

Looking at the case Crytek has presented we can see why they feel entitled to some compensation. However, the fact that this is going to court and we'll likely see dirty laundry aired as a result and this is probably going to have a very negative impact on the area that Crytek less than a year ago saw as its core business, namely their tech and engine. What developer embarking on a three-four year journey of developing a major project would choose CryEngine today? Not only has the company suffered through restructuring and financial troubles, but they're also taking a former partner to court. Not exactly the sort of stability you'd want for a project that is set to cost tens of millions of dollars over the next few years. The only winners here are Unity and Unreal Engine, apart from lawyers.

Is there a chance of salvation? Yes. Undoubtedly so. The re-envisioned Hunt: Showdown is actually looking very promising, and in this industry one big hit can be enough to erase a handful of mistakes. And who knows if the cryptocurrency gamble might pay off (though that's not really our area of expertise)? It sounds like a lottery ticket, but stranger things have happened. And ultimately there is talent left at the studio, the talent that has endured the rise and fall and whose experience is key moving forward. The question is if there is a plan for the future that will ensure the long-term prospects of the company. Recent history would suggest there isn't and that we're seeing a company in its death spiral, desperately looking for one short-term solution after another. But that's just an outside perspective on the situation and time will tell how Crytek will fare in the months and years ahead.