Crytek, the major developer perhaps best known for the Crysis series, has broken silence on rumours regarding its inability to pay staff, confirming that it's closing down a whopping five of its wholly owned studios. The move means that its Budapest (Hungary), Sofia (Bulgaria), Seoul (South Korea), Shanghai (China), and Istanbul (Turkey) offices will all cease to exist. Its main headquarters in Frankfurt (Germany) will survive, while its team in Kiev (Ukraine) will continue work on Warface.
As part of a press release, the company indicated that it will focus its attention on its CryEngine game development toolkit. "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," the firm explained. Co-founder Avni Yerli also personally thanked staff for their support, though his embattled brother Cevat Yerli refrained from being quoted.
Crytek's most recent release, Robinson: The Journey, launched as a PlayStation VR exclusive, but despite being technically impressive, drab gameplay failed to thrill critics. However, the company does still have one high-profile engine licensee on its books in the form of Cloud Imperium Games, the makers of Star Citizen. "We believe that going through this challenging process will make us a more agile, viable, and attractive studio, primed for future success," Yerli concluded.
Our thoughts go out to all those who suddenly find themselves out of work.