Crytek, the independent developer behind games like Crysis and Ryse, is in some major financial trouble, with reports of employees going unpaid, games being canceled and staff walking out.

Multiple game news sites began receiving tips from employees within the studio that paychecks were coming in late, or not at all, over the past few months. At the head of the trouble is Crytek's UK-based studio, currently working on the shooter Homefront: The Revolution, which was announced just before this year's E3. Crytek bought the rights to the Homefront franchise from THQ for $500,000 during bankruptcy proceedings.

According to sources who reached out to Kotaku, Crytek's UK staff has not been paid what they are owed, and much of the studio's staff handed in formal grievance letters before heading home. One current employee estimates roughly 100 people have left Crytek, which employs around 800 people, in the past three months. Publisher Deep Silver, which is set to release Homefront: The Revolution, may be looking to purchase the studio in order to protect its investment.

Multiple unannounced game projects have also been axed, including work on a Ryse sequel, after conflict emerged regarding whether Crytek or Microsoft would own the franchise.

Employees who elected to speak out talk about a Crytek that is losing its identity. Known for top-notch visuals and PC-focused titles, one employee told Kotaku the studio is instead focusing on free-to-play games, which is frustrating for many within the company and for fans.

This falls perfectly in line with the news that Crytek UK managing director Karl Hilton is changing positions in the company.

"With new titles such as Warface and Arena of Fate, Crytek is moving in to self publishing and new business models," Hilton said in a statement to Kotaku last month. He will be looking to find a new position around those ideas in the studio.

Crytek boss Cevat Yerli also told VentureBeat last year the studio in the future would only be making free-to-play games.

Problems are not just at Crytek U.K., however. Sources say paychecks are coming in late or only in partial amounts across the developer's multiple studios.

Despite all the sources claiming otherwise, Crytek's publicly denies all of the reports.

"The information in those reports and in the GameStar article itself are rumors which Crytek deny," says the studio in a statement to Eurogamer. "We continue to focus on the development and publishing of our upcoming titles Homefront: The Revolution, Hunt: Horrors of the Gilded Age, Arena of Fate, and Warface, as well as providing ongoing support for our CryEngine and its licensees."

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