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Crytek CEO Cevat Yerli chimes in with his side of the no-pay problem resolved last week

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Posted on August 8, 2014 AT 12:00pm

In a lengthy interview with Eurogamer—the first the company’s given since installing their new revenue source and selling Crytek UK and Homefront to Deep Silver—CEO Cevat Yerli gives his take on the very public problems reported over the past few months.

Said problems primarily revolve around Crytek UK and reports from Kotaku sources of employees going unpaid for long stretches of time. These issues eventually resolved themselves once Crytek gained a new, undisclosed source of revenue, sold Crytek UK and the Homefront IP to Deep Silver, downsized Hunt: Horrors of the Gilded Age developer Crytek Austin, and transferred development responsibilities to its Frankfurt, Germany headquarters.

“You have two choices, right? Either you delay payments—again delay…it’s not that they didn’t get paid, they got delayed—delay payments and salvage the company,” Yerli told Eurogamer. “Or, you push your cash flow directly tot he studios and you file for insolvency. Both options are really bad. So you have to make the better of the two bad decisions.”

According to Yerli, the company assured it staff that the company not in troubled waters, but rather simply needed “more time to salvage it” and would provide “inconvenience payments” to those who stayed on.

“Some people were very impatient and got angry at the smallest delay,” he added. “Also, there was a critique of us not being proactive in communication, which we don’t understand, because we had been frequently in the UK as well as every other studio, talking about potentially rough times. And we had even shared with people how they should maybe work with different banks at a personal level to prepare. Or, if not, they could make a choice to resign and look for other jobs.”

“We didn’t get paid, too,” Yerli said.

Concerning the trust-damaging lack of communication cited by several Crytek employees, Yerli says their expectations weren’t “realistic.”

“There are expectations, for example, that we reveal the entire situation of any deal, any cash flows and P&Ls [Profit and Loss statements] and things like that. you can’t do that. That’s internal. Even our investor doesn’t have that level of access to be honest.”

On the other side of all this, of course, Yerli says Crytek is in a better place as it continues along in its transition from game developer to online publisher service. And while, following Crytek UK and given the nature of Crytek’s evolution, it might seem likely that more studios will be sold off, Yerli believes that “is not going to happen any more.”

You can read the full interview at Eurogamer.

Source: Eurogamer

Chris Holzworth, News Editor
Chris Holzworth has wanted to write about games all his life. He first cut his teeth writing for enthusiast sites such as RPGFan, and after writing for just about every other enthusiast website he could came across, wound up as EGM's east coast news correspondent (read: editorial intern, a fancy phrase for "slave") before relocating to LA to serve as news editor. [Meet the rest of the crew]

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