Firefall Studio Failed to Pay Its Employees This Christmas

Posted by and | December 29, 2015 | News | No Comments
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Red5, the studio behind the sci-fi MMO Firefall, failed to make payroll this Christmas. Employees expecting to receive paychecks on Friday, December 25, took to social media when their direct deposits did not go through.

A small handful of employees received the following message:

Hi Team,

I regret to inform you that Red5 currently does not have the funds necessary to meet our payroll scheduled for today Friday, December 25. Due to this, there will not be payroll paid this week.

Red5 and The9, our parent company, is currently working to resolve this, during the holidays, as soon as possible. We are hopeful we’ll be able to resolve this and will update the team immediately. (Source)

Since then, the company held a meeting with the entire staff confirming their financial troubles and promising to pay employees by December 30. That payment will not include back pay, however.

Red5 has been around for 10 years, and this is not the first public sign of their financial woes. The company laid off approximately 40 employees in November, according to Game Informer.

A GoFundMe campaign has been launched by a fellow game dev to raise money for Red5 employees who haven’t been paid. As of Tuesday morning, it has raised less than $600 of its $100K goal.

Keezy Young

About Keezy Young

Keezy is a gamer, illustrator, and designer. Her background is in teaching and tutoring kids from ages 9 to 19, and she's led workshops for young women in STEM. She is also holds a certificate in teaching English. Her first memory of gaming is when her dad taught her to play the first Warcraft when she was five. You can find her at Key of Zee and on Twitter @KeezyBees.

Courtney Holmes

About Courtney Holmes

Courtney is Pixelkin's Associate Managing Editor. While working with the Girl Scouts of Northern California, she mentored young girls in teamwork, leadership, personal responsibility, and safety. Today, she spends her time studying adolescent development and using literary analysis techniques to examine video games.