Yeah it is always sad to see when Studios fall. Crytek currently is Falling it seems. What It stems from? well.
I assume part of it is that Crytek turned thier back on its fans and what thier games stood for mid last generation. Far Cry and Crysis were both fairly big and open (I would claim that Far Cry were the better game by far). And while they had always pushed Graphics, what made them special were the open natur of thier games, and relative flexibility.
Problems seems to have started around Crysis 2, a game which in story, in setting, in pretty much everything turned its back on what Crysis had been, Thus alienating the fans they already had, and betting alot of Money on the console versions selling great, they never truely did, Crysis 2 were a mildly more open fps them then usual, but were pretty run of the mill kind of game, with disjointed story and painfully annoying characters. It was not a bad game, but on consoles where perhaps 5 games make it big a year, it was not one of them.
They recoiled alot from that, and Made Crysis 3 to be more focused with a bit more open nature. It still felt like a rollercoaster ride then you walking the path you saw fit, with too many set pieces and a protagonist so unberably obnoxious that it would have turned most people away from it. It can be argued that the PC version is still the best looking game released, but the gameplay had been mirrored in alot of games since Crysis 1, and Crytek had not managed to push thier game series farwards, rather it felt like it was slowly going backwards. Graphically steller sure, but gameplay wise it felt tired.
In the same time Crytek were banking on selling the Cry Engine, a really potent engine althrough slightly complex and cumbersome to Work with sompared to others, while it matured and became better it suffered from massive competition and I am not sure how well thier support were. A shame really but for alot of people the UE4 seems to have had a negative impact on thier engine (not an engine coder so can't say if true or not). and they kind of got outshone by the Frostbyte engine.
Crytek were very pro F2P right from the beginning, but I doubt it went the way they thought it would. I have no numbers but F2P on PC seems to have cought on to a far less degree then Mobile games did, and I think they thought it would spread like wildfire, however the community on pc were quite weary of F2P (and quite outspoken about it, it is few F2P games that has a good rep).
Then ofcourse there was the spending spree. CCrytek bought in ALOT of studios relatively fast, which may have caused alot of infrastructure problems, and they might have bled Cash through this. And all that staff had Little to show for it, outside of a moderately sucessful F2P game in Russia and a series of letdowns.
o yeah it is sad, I doubt this will kill them, but they will likely become alot smaller. They need to focus on gameplay Again, and keep as much attention to making thier games flexible and fairly different if they should hope to bounce back into full glory. They should let Crysis die (if they have'nt already) and perhaps search for a different Publisher, since they do need a console presence abd EA is great there, however EA does require the PC version to run off Origin, which does cut into sales since that tends to prevent the game from being sold on Steam (which is the equalant of saying that it were not allowed to be sold through gamestop if it was a console version).
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