Crytek is reportedly going through financial and staffing difficulties, forcing it to cancel some projects in progress. According to the sources, a sequel to Ryse: Son of Rome was canceled, along with prototypes for other games.

Kotaku reports that according to anonymous sources, the German and British offices have lost high-level employees. One source even claims that approximately 100 people have left the company. Current and former employees also say the developer has missed payments as well. The problems started to become apparent when one particular check was delayed, after they canned Ryse 2.

"Suddenly the direction everyone saw us go in was not that clear anymore," said one employee. "It was obvious that we didn't have any big time publishers at our back to finance our development... A lot of people started to get frustrated then (and started to look for other work), as the strategy was not clear to the employees."

Crytek, for its part, has denied the issues. Shacknews contacted the studio regarding the bankruptcy rumors, and received the following statement:

“Regardless of what some media are reporting, mostly based on a recent article published by GameStar, the information in those reports and in the Gamestar article itself are rumors which Crytek deny. 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. We have received a lot of positive feedback during and after E3 from both gaming press and gamers, and would like to thank our loyal employees, fans and business partners for their continuous support.”