Tuesday saw further allegations of German video game company, Crytek, suffering financially and on the "verge of bankruptcy."
The allegations began when German magazine GameStar claimed Crytek were having financial trouble and were not paying their employees on time. Translated bu Eurogamer, an anonymous Crytek employee said in the magazine "The vultures are circling already," regarding the company. Rival companies were reportedly picking away at the employees of Crytek, while others like Wargaming were considering a potential buyout of the company. On the Xbox One exclusive, "Ryse: Son of Rome," development of the recent Crytek game was said to be an "disaster." A silver lining for Crytek was that the company was supposedly close to a new contract deal to alleviate its financial woes, but has not been signed yet.
Eurogamer had back up GameStar's claim of Crytek being unable to pay employees at their UK division and Kotaku later added to those claims. Jason Schreier of Kotaku wrote he had heard ramblings of Crytek having financial trouble back in March, but didn't have enough concrete evidence to report the story until now. Crytek UK, the developers behind the upcoming "Homefront: The Revolution," were indeed receiving paychecks late and their bonuses delayed. Karl Hilton, Crytek UK managing director, was said to be leaving his position. In a follow-up, Schreier wrote Crytek had canceled work on multiple games over the past few months, with a sequel to "Ryse" being their biggest canned title.
On the cancellation of "Ryse 2," conflict between developer Crytek and publisher Microsoft over who owned the property was the cause of death for the sequel. An anonymous Crytek employee added Microsoft would no longer be sending Crytek cheeks regarding the game. When pressed about "Ryse," Microsoft responded with "nothing to announce about the future of the franchise at this time."
In all these reports, Crytek has continuously denied allegations of financial debt or failure to pay employees on time.