Crytek UK is closing down following Homefront sale, while Austin studio suffers layoffs

Following today's announcement of the sale of Homefront to Deep Silver , Crytek has confirmed that its UK studio is being closed down, while its Austin studio will suffer layoffs as the development of Hunt: Horrors of the Gilded Age is being moved to Frankfurt.

Deep Silver said today that work on Homefront: The Revolution will be moved to its new Dambuster studio, leading to speculation that it may have also acquired the troubledCrytek UK as part of the Homefront deal. That's not actually the case, as it turns out, but it's close.

"Crytek has been in extensive discussions with leading producer and distributor of digital entertainment products, Koch Media, regarding the acquisition of rights for the Homefront IP," Crytek said in a statement. "On completion of the proposed acquisition, the Homefront team from Crytek's Nottingham studio would transfer their talents to Koch Media in compliance with English law and continue their hard work on upcoming shooter, Homefront: The Revolution."

Crytek's Austin studio, which was working on Hunt: Horrors of the Gilded Age, will also be impacted by the restructuring. Development of Hunt is being moved to Crytek's Frankfurt operation, while Austin will be reduced to "several staff members" who will support CryEngine licensees in North America. Crytek said employees who aren't retained for the support team "will be invited to apply for new positions at Crytek in Germany."

"As we look to cement Crytek's future, this strategic deal with Koch Media would allow us to continue with our ambitious goals to become an online publisher. With Warface, Arena of Fate and Hunt, we believe we have the perfect portfolio and teams to make that happen," Crytek CEO Cevat Yerli said in a statement. "We would like to thank all our staff – past and present – in both Nottingham and Austin for their contributions to the company, and we wish all the very best to anyone who may no longer be under the Crytek banner moving forward."

The Austin-based Crytek USA was formed in early 2013from the remnants of Darksiders studio Vigil Games, which was closed down in the wake of THQ's collapse.