Crytek has confirmed that it will be closing five of its seven game development studios following financial issues.

The financial crisis at Crytek first came to light when several of the company's software developers publicly stated that they were not receiving earnings anymore, despite reassurances from higher management that the issue would be resolved soon.

In a new press release the company has now confirmed that it will be closing five of its seven development studios. The Crytek development studios in Hungary, Bulgaria, South Korea, China and Turkey will be closed.

Despite the closure of the studios, Crytek will still continue to develop games and related services via their studios in Germany and Ukraine.

It is unknown what will happen to the software developers who have yet to receive their earnings, but it is likely that they will atleast receive a part of their earnings before they are laid off.