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Crytek UK staff not paid full wages since April and more

Marsyas

Banned
The hell happened in 2010?
There are multiple factors:
- Higher staff costs
- They canceled a project and had to write-down 6,3 million Euros for that.
Die Abschreibungen sind im Wesentlichen aufgrund der außerplanmäßigen Abschreibung von Computerspielen aufgrund der Einstellung eines Projekts in Höhe von TEUR 6.360 von TEUR 782 im Vorjahr auf TEUR 7.558 angestiegen.
- and some stuff I don't understand :S
Der Materialaufwand ist im Vergleich zum Vorjahr von TEUR 7.685 um 94% auf TEUR 14.936 gestiegen, was zum einen darauf zurückzuführen ist, dass aufgrund des Lizenzvertrages mit der Crytek Lizenzverwaltung GmbH erstmalig Lizenzentgelte gezahlt werden mussten und zum Anderen der Aufwand für Fremdleistungen im Rahmen der Entwicklung von „Crysis 2“ angestiegen ist.
 

Bedlam

Member
Once again, this smells like complete and utter leadership failure.

GG Yerli & Co. That's what happens when the business model becomes the focus of a games company instead of the actual games.

For some reason I think of Crytek as the antithesis to CD Project. At some point within the past few years both were in similar positions but Crytek chose to chase the mass market for short-term profits and pursued uncertain fad-business strategies like F2P while CD Project focused on their strengths and creative visions. The latter company grew slowly but also in a very safe and grounded fashion. Crytek blew up like a bubble and are now about to implode.
 

antitrop

Member
I dunno man:

Crysis - a clever publisher would buy this and make another in the vein of the first game, and they'd have a pretty strong 3-5 million seller on their hands.

After the massive success of Far Cry 3, I think people are primed and ready for another open-world jungle shooter romp. Easy success.
 
Jesus, that three month "promotion" move is diabolical. Anyone who was confused about what the point of at-will employment was in those Bungie/Marty O'Donnell threads? This is the kind of situation where that kind of system is helpful.
 

Wiktor

Member
I hope that when Crytek goes down the Black Sea guys will stick together and reform under a new name, because it's a crime they never got to develop the ideas from Knights of Honor further. I doubt they would have much problems finding PC publisher willing to fund their strategy these days.
 

Darksol

Member
If employees aren't getting paid, they can't be forced into working there. Hell, I'm sure there are a number of illegalities there. I hope the best for the staff, but Crytek can burn to the ground for that shit as far as I'm concerned.
 

JNT

Member
I'm sorry, if you aren't able to pay your employees any extra expenses should be terminated in order to do so. The ship seems to be sinking.

Whatever money that is coming in is going towards the bosses paychecks still.
It's going towards flights and other expenditures.

The people who aren't getting paid are the actual workers and some positions it seems they are being forced to stay if they want to quit.

On top of that, they've seemed to have had avenues to bring in needed money by selling IP's which they refuse to do.

They are doing everything they can to NOT pay their employees. Also their long run looks pretty moot....face to face meetings aren't turning the tide either way.

I can agree that companies need to adapt their size to the costs that they need to incur to keep the ball rolling. Then again, the video games industry is a peculiar business. If a project is projected to take X years of development for a Y-man workforce, then cutting the workforce will invariably delay development. If Crytek were to cut the workforce and delay the game the numbers might point to the studio toppling over before they can release a finished game (and make back some money), so they might deem it necessary to do some dick moves that employees will be complaining about (and rightly so) in a desperate attempt to survive, which would be preferable to a foreclosure where everyone will lose their jobs.

I can't speak for the decision to not sell some of their IP:s. Maybe management is staying optimistic and think that selling off their IPs will put them in a really bad spot once their financial problems are solved. Maybe the bidders of the IP are lowballing.

All in all, I personally know too little about the facts to say anything about Crytek. All I can say is that people should be aware that upper management is always in a 'damned if they do, damned if they don't' type of situation in times when the company that they are trying to run suddenly finds itself in a financially dire state. They very seldom actively try to put the company out of business, even if it might seem that way from the outside looking in.

Also, serious question, do we know only the upper management is being paid, or is that an assumption?
 
Is this even legal? I'm not familiar with the UK legal system.


Yeah, I've long since figured that much of their cash was coming from bank loans and private equity given the growth versus number of projects.

I can't imagine they'll get much more investment at this rate though.
3 months isn't too uncommon for more senior staff, mostly because if you wish to leave there is a high potential you are a single source for something, and it typically takes longer to replace you and may require a handover period.

I guess you could always turn up and do no work, play porn over loudspeaker and fart a lot until you are asked to leave immediately.
 
Crytek Frankfurt isn't too affected by much of this just yet, but more than one Crytek dev told me much of the feeling internally is that the Yerli brothers are quite the incompetent leaders, a lot of times jumping from one idea to the next. There isn't a lot of faith in them and the direction they're going. Can't really say I blame them, shit's been going downhill fast.
 

Wiktor

Member
I can agree that companies need to adapt their size to the costs that they need to incur to keep the ball rolling

A lot of Crytek staff were in cheap parts of the world thugh. I think they just managed their projects badly and for some bizzare reason didn't diversify. They had pretty big success as PC exclusive dev and while expanding to consoles was a fine idea, they just threw the whole pc audience away. Then when console audience didn't deliver they started to throw everything into F2P. Instead of spreading their resources into multiple sectors and audiences, which would be a lot safer.

Look at Black Sea, such a great devloper. Small one, cheap to run and yet Knights of Honor sold over half a million copies. But since Crytek took them over they just been making scraps for other projects and no they make generic F2P Hunt? Blah.
 

Big_Al

Unconfirmed Member
After the massive success of Far Cry 3, I think people are primed and ready for another open-world jungle shooter romp. Easy success.

Shitty collectibles for all!

Sad for all those poor Crytek employees :( It sounds like the Yerli brothers really don't have much of a clue when it comes to management skills.
 

JCreasy

Member
376208.jpg


Sorry

I hope Naughty Dog recruiters are snapping up talent over there as we SPEAK!

Get on that shit Naughty Dog! It's poaching season!
 

Almighty

Member
Yeah looks like Crytek is on its way to the grave. My sympathies for those that work there. With that said I am not surprised it seemed like Crytek grew too big too fast. They also seemed to have lost direction by trying to chase the next big thing.
 

JNT

Member
A lot of Crytek staff were in cheap parts of the world thugh. I think they just managed their projects badly and for some bizzare reason didn't diversify. They had pretty big success as PC exclusive dev and while expanding to consoles was a fine idea, they just threw the whole pc audience away. Then when console audience didn't deliver they started to throw everything into F2P. Instead of spreading their resources into multiple sectors and audiences, which would be a lot safer.

Look at Black Sea, such a great devloper. Small one, cheap to run and yet Knights of Honor sold over half a million copies. But since Crytek took them over they just been making scraps for other projects and no they make generic F2P Hunt? Blah.

I agree. The point being that the reason for Crytek being in a bad spot right now is not because of comparatively small costs that could have been avoided, but because the company has been following the wrong development path and that has cost them millions as a result. They managed to make unique games with both Far Cry and Crysis, but homogenized their later games at the expense of people losing interest in their output.
 

Aretak

Member
Yeah, exactly. Microsoft likely gets the IPs and the tech dirt cheap, but I could see them paying big for a total buyout.
I really can't see Microsoft being in for anything, other than perhaps the Ryse IP on the cheap. Why would they want the CryEngine tech? It's not it's ever really taken off with third parties. Only a handful of third party games have used it. I'm not even sure how valuable the Crysis IP is any more, given Crysis 3 was something of a flop (at least in EA's eyes). It's not like Microsoft are short of shooter IPs to call on either.

I just don't see why they'd want anything Crytek have, Ryse IP aside.
 

Tripon

Member
I really can't see Microsoft being in for anything, other than perhaps the Ryse IP on the cheap. Why would they want the CryEngine tech? It's not it's ever really taken off with third parties. Only a handful of third party games have used it. I'm not even sure how valuable the Crysis IP is any more, given Crysis 3 was something of a flop (at least in EA's eyes). It's not like Microsoft are short of shooter IPs to call on either.

I just don't see why they'd want anything Crytek have, Ryse IP aside.

MS seemed to have signed a long term deal with Epic to license the Unreal engine. All of their current projects use UE4.
 

theWB27

Member
I can agree that companies need to adapt their size to the costs that they need to incur to keep the ball rolling. Then again, the video games industry is a peculiar business. If a project is projected to take X years of development for a Y-man workforce, then cutting the workforce will invariably delay development. If Crytek were to cut the workforce and delay the game the numbers might point to the studio toppling over before they can release a finished game (and make back some money), so they might deem it necessary to do some dick moves that employees will be complaining about (and rightly so) in a desperate attempt to survive, which would be preferable to a foreclosure where everyone will lose their jobs.

I can't speak for the decision to not sell some of their IP:s. Maybe management is staying optimistic and think that selling off their IPs will put them in a really bad spot once their financial problems are solved. Maybe the bidders of the IP are lowballing.

All in all, I personally know too little about the facts to say anything about Crytek. All I can say is that people should be aware that upper management is always in a 'damned if they do, damned if they don't' type of situation in times when the company that they are trying to run suddenly finds itself in a financially dire state. They very seldom actively try to put the company out of business, even if it might seem that way from the outside looking in.

Also, serious question, do we know only the upper management is being paid, or is that an assumption?

Assuming on my part. How many cases do the bosses not collect their money despite the ship sinking? It's pretty rare. Usually they still get bonuses even after the tip has disappeared into the ocean.
 

Longsword

Member
If Ryse 2 was indeed cancelled that will have left a huge hole in their finances.

If they do go to chopping block, someone with deep pockets aggressively looking for acquisitions will hopefully swoop in. Wargaming.net is the most obvious candidate if I was a betting man.

I do hope the Studios are saved, people have families to take care of, and whatever troubled Crytek may have had, the rank-and-file developers are hardly to blame.
 

scitek

Member
Crutek USA are former Vergil devs. They went from one dead company (THQ) to another.
Yeah I really feel for them. I think HUNT looks good, too.

I thought when Crytek announced it was going F2P that it'd change that stance before ever actually committing to it because it was just so late to the party, I didn't see it being sustainable for newcomers.

This makes me sad, because they've had so many chances to succeed, but it's been one head-scratching decision after another. From Crysis 2 being an unnecessary reboot of the series, to Ryse initially being a Kinect exclusive to abandoning AAA gaming and being entirely F2P after Homefront 2, I just always have questioned what they were thinking.
 

Blue Volt

Banned
I hope Naughty Dog recruiters are snapping up talent over there as we SPEAK!

Get on that shit Naughty Dog! It's poaching season!

I could just imagine them poaching Crytek's graphic programmers. What insanity could ICE Team, Corrinne Yu and some of Crytek's graphic programmers cause.
 

Metallix87

Member
I really can't see Microsoft being in for anything, other than perhaps the Ryse IP on the cheap. Why would they want the CryEngine tech? It's not it's ever really taken off with third parties. Only a handful of third party games have used it. I'm not even sure how valuable the Crysis IP is any more, given Crysis 3 was something of a flop (at least in EA's eyes). It's not like Microsoft are short of shooter IPs to call on either.

I just don't see why they'd want anything Crytek have, Ryse IP aside.

I think both the Ryse and Crysis IPs are worth acquiring. Maybe Homefront, too, depending on how far along the new game is. Also, TimeSplitters, possibly.

The CryEngine is likely not something they'd be super interested in, true, but I could see them snatching it up to avoid having to sign deals for engines in the future.

Honestly, I think there's also a LOT of talent there that Microsoft would like to get their hands on, too.
 

JNT

Member
Assuming on my part. How many cases do the bosses not collect their money despite the ship sinking? It's pretty rare. Usually they still get bonuses even after the tip has disappeared into the ocean.

In my experience it's the other way around. Problem is, those cases don't make headlines. The cases you mention do though.
 
Crytek, we used to love you back in the good old PC days. What happened? Yes, even that mouthpiece Yerli and his useless brothers. Also used to drive Lamborghinis and other expensive cars back then. Probably still the case, I am sure they are not the ones who are suffering.
 
Is this even legal? I'm not familiar with the UK legal system.


Yeah, I've long since figured that much of their cash was coming from bank loans and private equity given the growth versus number of projects.

I can't imagine they'll get much more investment at this rate though.

In EU law it can come under pay discrimination as there needs to be equal pay for equal value.
 
Is this even legal? I'm not familiar with the UK legal system.


Yeah, I've long since figured that much of their cash was coming from bank loans and private equity given the growth versus number of projects.

I can't imagine they'll get much more investment at this rate though.
Hah, job title promotions are an age old tactic ... People can always turn down the promotion if they want
 

Not Spaceghost

Spaceghost
Crytek Frankfurt isn't too affected by much of this just yet, but a lot of the feeling internally is that the Yerli brothers are quite the incompetent leaders, always jumping from one idea to the next. There isn't a lot of faith in them and the direction they're going. Can't say I blame them really, shit's been going downhill fast.

You've been back for like a month and I didn't even notice ;__;
 
Gaben should snap them up and release their entire catalogue on steam machines, finally we'll have hardware capable of running crysis.
 

jschreier

Member
Crytek Frankfurt isn't too affected by much of this just yet
This is not true, as I reported on Tuesday.

but a lot of the feeling internally is that the Yerli brothers are quite the incompetent leaders, always jumping from one idea to the next. There isn't a lot of faith in them and the direction they're going. Can't say I blame them really, shit's been going downhill fast.
You really shouldn't make statements like "a lot of the feeling internally" without citing your sources. I like you, shinobi, but this is what I hate about GAF insiders. You don't think about the effects of what you're saying. Did you talk to someone who works at Crytek? Two people? Three people? Enough people to be able to definitively say something like "a lot of the feeling internally is that the Yerli brothers are quite the incompetent leaders"? You are making one hell of an accusation here -- do you really have the sources to back it up? The article in OP suffers from the same problem.

It's one thing to tweet or report rumors and vague bullshit about E3 pressers or framerates; it's quite another to make serious accusations that involve real people's jobs.
 
You really shouldn't make statements like "a lot of the feeling internally" without citing your sources. I like you, shinobi, but this is what I hate about GAF insiders. You don't think about the effects of what you're saying. Did you talk to someone who works at Crytek? Two people? Three people? Enough people to be able to definitively say something like "a lot of the feeling internally is that the Yerli brothers are quite the incompetent leaders"? You are making one hell of an accusation here -- do you really have the sources to back it up? The article in OP suffers from the same problem.

It's one thing to tweet or report rumors and vague bullshit about E3 pressers or framerates; it's quite another to make serious accusations that involve real people's jobs.
Two people, yes. Bish can talk to me if he'd like, I'm all open for it.
 

jschreier

Member
Two people, yes. Bish can talk to me if he'd like, I'm all open for it.
OK, so instead of saying something like "a lot of the feeling internally is that the Yerli brothers are quite the incompetent leaders," try "two Crytek employees tell me the feeling internally is that the Yerli brothers are quite the incompetent leaders." It might seem like an insignificant difference to you, but it's the difference between potential defamation and reporting what you've heard.
 
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