Is Crytek facing bankruptcy?

VR Zone reports Crytek is in a perilous financial situation. Not only is the company struggling to market its CryEngine game engine but it also wasted a lot of money on Ryse, an Xbox One exclusive game that failed to become a hit.

The site adds that CryEngine is a very impressive game engine but notes that there's no market for it as the current generation of video game consoles don't require a game engine capable of pushing graphics realism to the next level.

But CryTek is facing a two-fold problem: developers don’t seem to be interested in the CryEngine, and the company is hemorrhaging cash after significantly ramping up manpower to get its Xbox One exclusive Ryse out the door on schedule – which was a dud for sales. According to DSOGaming’s summary of a report from the German magazine Gamestar, the company is in such bad financial shape that its only option might be to declare bankruptcy. Reportedly, employees are leaving and a number of companies are reportedly waiting to snatch up IP should the company declare bankruptcy and put its assets on the auction block.