Support NeoGAF

[Nirolak]

Probably won't be around very long.

In November, Red 5 laid off 40 employees, and last week, the studio laid off several more, a source said. Red 5 typically pays its staff every other Friday, but on December 25, employees didn’t receive their paychecks. Several employees said they received the following letter:

Hi Team,

I regret to inform you that Red5 currently does not have the funds necessary to meet our payroll scheduled for today Friday, December 25. Due to this, there will not be payroll paid this week.

Red5 and The9, our parent company, is currently working to resolve this, during the holidays, as soon as possible. We are hopeful we’ll be able to resolve this and will update the team immediately.

Source: http://kotaku.com/sources-game-studio-red-5-misses-payroll-on-christmas-1749933734

 

[Trace]

That's too bad, I don't think Firefall did very well, kind of dropped of the face of the earth after hearing about it years ago.

 

[Cheesemeister]

Stay on target...

 

[Windtrick]

Really sad to hear about the situation especially after the whole fiasco with their CEO and Firefall some years back. Lots of the devs seemed really passionate and that they love what they do. My sympathies to all of them and I hope things turn around.

 

[Barzul]

Damn that's rough. Are they working on any new projects/games about to be released?

 

[Kobiekun]

Stay on target...

I LOL'd.

All kidding aside, hopefully the people at Red5 get the money that's coming to them.

 

[Kieli]

It's a shame the gaming industry is too volatile and fickle for stable employment to be tenable... :\

 

[Purple Cheeto]

Quasi related, I got an email from LinkedIn telling me today to congratulate a connection on a new job today.

That connection was a Sr Recruiter at Red 5.

 

[Parham]

A Red 5 marketer started a Facebook group to keep tabs on ex-employees.

Ex-Red5'r here. As you know, The9 has said they will take legal action against anyone complaining about not being paid on social media.

This is a warning. There is a Facebook group, for current and ex Red 5 employees that is supposed to be "helping" people find jobs and discuss matters. A lot of good people are helping each other on there, but there is something you should know.

I've come to find out the group was started by Steven Na (Red 5 marketing guy), under direct orders from CEO Zhu, as a way to spy and keep tabs on all Red 5 employees and those let go. They are looking for information here. Do not trust this FB group and be very very careful what you post there.

Meanwhile, it is illegal to not get paid, or to be paid monthly as they are proposing under some circumstances. Red 5 employees can get help from the CA labor board here:

http://www.labor.ca.gov/contactindex.htm

 

[Imbarkus]

A Red 5 marketer started a Facebook group to keep tabs on ex-employees.

Interesting, if true.

 

[StrawberryJam]

Man, people give Kotaku a lot of shit but when it comes to news like this they are on the ball. Good work from Shreier. That's horrible for the employees though.

 

[Teknopathetic]

Firefall has been a pretty colossal fuck up from the jump. It's a shame that the devs who stuck through with this project or signed on after the fact are getting this in return for their dedication.

 

[DR2K]

They can sue you for claiming they're breaking the law by not paying you?

 

[Peltz]

They can sue you for claiming they're breaking the law by not paying you?

You can sue for unpaid wages depending on the jurisdiction.

Edit: sorry. I misread that.

 

[Fat4all]

Seems like they expanded too quickly with not much to show for it.

 

[StrongBlackVine]

Are employees that aren't getting paid still expected to continue working?

 

[Kieli]

A Red 5 marketer started a Facebook group to keep tabs on ex-employees.

How do you take legal action against a person who is complaining about not getting paid?

It's like if a homeowner sues a neighbour who tripped on the homeowner's sidewalk because he was too cheap to salt it or clear the snow/ice...

 

[Fine Ham Abounds]

They can sue you for claiming they're breaking the law by not paying you?

Anyone who can afford a lawyer can threaten to do anything to someone who can't, it's called justice

 

[Silphonica]

How exactly do they think they will obtain the funds? They arent releasing anything soon right?

 

[Parham]

What I've heard from other folks is that they're expecting Red 5 to make payroll tomorrow. Apparently, the legal threats have to do with disclosing anything addressed within their internal emails, which would be a violation of NDA. That may include talking about the missed payroll. Purely speculation on my part, but their ability to legally pursue people on those grounds seems dubious at best. Given that this is all based on second hand information, take it with a grain of salt.

 

[Imbarkus]

What I've heard from other folks is that they're expecting Red 5 to make payroll tomorrow. Apparently, the legal threats have to do with disclosing anything addressed within their internal emails, which would be a violation of NDA. That may include talking about the missed payroll. Purely speculation on my part, but their ability to legally pursue people on those grounds seems dubious at best. Given that this is all based on second hand information, take it with a grain of salt.

Lawyers like to get paid, too.

Best of luck to all affected.

 

[TheStruggler]

jesus fucking christ i read this as cd projekt red

 

[system11]

Anyone who can afford a lawyer can threaten to do anything to someone who can't, it's called justice

This is the most depressing thing I've read on the Internet all week, because it's true.

 

[cyress8]

Feel sorry for them. I believe they tried overhauling game about 3 times, right? Whenever I came back, it felt the game was always different. They were trying their best to get something that will gain traction.

 

[massoluk]

Has there ever been a developer with a first game being MMO that didn't end up screwed?

 

[Papacheeks]

Well that's what happens when you take forever to get your game out of beta. They were in beta for years.

I remember when I went to PaxEast 2011 and played it, then got a code for alpha, that I waited almost a year for.

They took too long in there production and expected everyone to stay with them.

Similar situation as Toxxik.

The dream is dead Jim.

 

[outunderthestars]

It's a shame the gaming industry is too volatile and fickle for stable employment to be tenable... :\

This seems more like a case of betting your entire company on a massive project that simply wasn't very good.

 

[Seiniyta]

Has there ever been a developer with a first game being MMO that didn't end up screwed?

Not sure, hasn't worked out for Carbine (Wildstar) amazingly. Though I think the situation with Red5 is just a clusterfuck of mismanagent within.

 

[Joni]

Has there ever been a developer with a first game being MMO that didn't end up screwed?

Honestly, developing a MMO seems like the way to announce that you're never again releasing a game and closing up shop in a couple of years if you aren't an established company.

 

[kami_sama]

Honestly, developing a MMO seems like the way to announce that you're never again releasing a game and closing up shop in a couple of years if you aren't an established company.

Same with 38 Studios. They released Kingdoms of Amalur, but the MMO and the lawsuits made them close.