Crytek's been having a rough time of it lately. While the company's free-to-play shooter Warface has been a success in Eastern Europe and Asia, its last big-name title releast in the west, Ryse: Son of Rome, wasn't exactly a smash hit. (Reviews of the PC version are pretty good, though!) Crytek's biggest product, the hyper-advanced CryEngine V, has also faced stiff competition from Unreal Engine 4. Now, the company has issued a terse press release that says the company will be closing the majority of its development houses to "refocus on its core strengths."
It's no secret that Crytek has been having financial troubles for some time. Back in 2014, CEO Cevat Yerli admitted the company had delayed payroll checks for some employees to keep from having to file for bankruptcy. The new press release includes a statement from Managing Director Avni Yerli, who says "undergoing such transitions is far from easy." That's certainly true for the employees at the company's studios in Hungary, Bulgaria, South Korea, China, and Turkey—all of which have been closed.
The home office in Frankfurt and the Kiev studio (which created Warface) will stay with the company, although Eurogamer speculates that Crytek may be selling off Warface to Mail.ru. That company already publishes the game in Russia, where the free-to-play title has had the greatest success. If true, that would leave Crytek with only its home office. Still, that's where CryEngine was born, and as Avni Yerli says, that will be the company's primary focus now.