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:
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.