Bright Side of News had an interview with Crytek, you can read it over here. One of the things Crytek's Carl Jones reveals is that they moved away from the PC due to rampant piracy:
Q: A question regarding CryEngine 2. Can you tell us how well did it go with licensing, and did it satisfied your expectations at that matter?
Carl Jones: Licensing a PC-only engine was made difficult in the last few years due to the changing nature of the games market itself. Piracy hurt PC-only games in terms of sales figures, so publishers and developers moved away from making such titles. As a result, console middleware was more widespread than PC focused technology such as CryENGINE 1 and 2, but we have had some great successes and developers are working on great looking games that will launch soon, that started out on earlier versions of CryENGINE. We’re happy with the quality we achieved, but circumstances limited the quantity of licensees we signed up. That won’t be an issue with CryENGINE 3!