Crytek Closes Studios – Focuses on Premium IPs and CryEngine

Crytek, which has been stiffing its employees for pay for months, is now laying off staff and closing studios. All but two of the company’s studios are closing, and it will be dropping development of all titles but for its “premium IPs” and its lauded CryEngine toolset. Crytek’s Budapest, Istanbul, Seoul, Sofia, Bulgaria, and Shanghai offices will be closed, but its Frankfurt and Kiev studios have survived the cull.

“As part of the changes, Crytek will concentrate on development in its Frankfurt and Kiev studios and continue to develop and work on premium IPs,” a statement from the company reads. “CRYENGINE will remain a core pillar of Crytek’s overall strategy, with enterprise licensees and indie developers alike continuing to be served by regular engine updates. All other development studios will not remain within Crytek and management has put plans into action to secure jobs and to ensure a smooth transition and stable future.”

Staff wage arrears from October were paid last week, with November’s wages expected to be paid this week. According to Eurogamer, the money may have come from Mail.ru, which is buying Crytek’s free-to-play shooters Warface and the in-development Warface 2.

“Undergoing such transitions is far from easy, and we’d like to sincerely thank each and every staff member – past and present – for their hard work and commitment to Crytek,” said Crytek Co-Founder and Managing Director Avni Yerli. “These changes are part of the essential steps we are taking to ensure Crytek is a healthy and sustainable business moving forward that can continue to attract and nurture our industry’s top talent. The reasons for this have been communicated internally along the way.

“Our focus now lies entirely on the core strengths that have always defined Crytek – world-class developers, state-of-the-art technology and innovative game development, and we believe that going through this challenging process will make us a more agile, viable, and attractive studio, primed for future success,” Yerli added.