Crytek addresses financial situation CryEngine creator says it has been enduring "transitional phase," but has secured additional capital for the long term

Brendan Sinclair North American Editor Friday 25th July 2014 Share this article Share

Companies in this article Crytek

When reports first spread that Crytek had been missing payroll for months at some of its studios, the publisher dismissed the claims as rumors. However, reports of trouble at the company persisted and expanded, and today, a Crytek representative provided GamesIndustry.biz with its first statement on the situation since the original denial.

In the note, Crytek acknowledges that it "has been in a transitional phase" as it moves from being a developer to an online publisher, one that required significantly more capital. However, the company also said that it has since secured that capital and is now well prepared for the long term, although it added "we won't be communicating further details about our developments and progress."

The full statement follows below:

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.