Over the Christmas period Firefall developer, Red5 failed to pay its employees.
This was the second time the studio had troubles meeting payroll as the previous wages also went unpaid through the usual automated system which the studio blamed on bank errors. This lead to employees getting a cheque to pay into their bank accounts.
After news broke that employees were not being paid over Christmas, the studio held an all hands meeting where management confirmed that potential investments had fallen through causing the delayed payment.
The company is also considering moving to a monthly pay rotation instead of a more standard US industry practice of fortnightly payments. This change may come as soon as January but as the next scheduled pay period is on the 8th January we could see similar stories of employees not being paid in just over a week.
This kind of practice does seem to have hints of financial problems being a root cause of the problems but Red5 has issued a statement on the issue
Red 5 Studios, Inc has paid all employees in full. Recent rumors of Red 5 Studios’ financial situation are not accurate.
Firefall is currently operating a limited-account beta test in China. Red 5 studios is encouraged with peak 2nd day retention reaching 84% and working on optimization and content updates for both US/EU and China clients. The upcoming content is now being tested internally and scheduled to be updated to the Firefall US/EU servers in Q1 2016.
Red 5 Studios continues to develop content for Firefall and is planning to have synchronized global updates after the US/EU update. In the first half of 2016, Firefall will have a major content update in China in preparation for the Chinese Open Beta test. Red 5 Studios is committed to provide a high quality interactive experience to gamers all over the world. For more information, please visit www.firefall.com.
A number of Red5 employees confirmed to Game Informer that the payments they expected over Christmas had indeed shown up in their accounts today, 30th December.