UPDATED (again): Red 5 Reportedly Fails To Meet Payroll, On Christmas

QuintLyn Bowers
By QuintLyn Bowers, News Editor December 30, 2015
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UPDATE 12/30/2015: Red 5 reports that all employees have been paid (although the pay date was not disclosed) and also stated to GamesBeat that, "Recent rumors of Red 5 Studios’ financial situation are not accurate.” Here is the statement in full supplied to MMOBomb from Red 5:

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.

UPDATE 12/29/2015:According to GameInformer, Red 5 has met with employees and will be attempting to pay the monies owed on December 30th. This payment will "try" to be made and discussions about switching to a monthly pay (rather than biweekly) schedule are in the works although not confirmed yet. However, should the payroll be disbursed on the 30th, Red 5 could find itself in the same situation just one week later (Jan 8th) when the next biweekly pay disbursement would normally be due.

Christmas was less than awesome for the employees of Firefall developer Red 5 Studios, if reports are to be believed. According to a recent Reddit post employees of the company were informed the day they were supposed to be paid that it wasn’t going to happen. That day happened to be December 25th.

Reports state that the company issued a statement to employees on the matter after they discovered that no money had been deposited in their accounts or arrived in the mail.

"Hi Team, I regret to inform you that Red 5 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. Red 5 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."

Interestingly, banks typically don’t do deposits on Christmas day.

That said, Red 5’s failure to pay their staff has been confirmed by several employees. A Blizzard Entertainment staffer has even set up a GoFundMe campaign to try to raise money for the folks who didn’t get paid.

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In this article: Firefall, Red 5 Studios.

About the Author

QuintLyn Bowers
QuintLyn Bowers, News Editor
QuintLyn is a long-time lover of all things video game related will happily talk about them to anyone that will listen. She began writing about games for various hobby sites a little over ten years ago and has taken on various roles in the games community.

Discussion (5)

MrHeartless 5 years ago
Nothing will save this game, I played it early this year hoping it had enough time to get itself together and its the same mess it was years prior just with different shit smeared over itself this time around.

They had all the financial backing a new company could want and people who possessed real talent. Unfortunately poor talent and money is no match for abhorrently bad management.

RIP Firefall

asd 5 years ago
SHII t game, devs deleted all items few times, no refunds, just advertising pay to win stuff, brainless gayplay , neverending random 3 min parties to grind resources around, pure poop, game is dead long time ago, it was fine in cb and when they not scammed existing players.

duty14 5 years ago
Its a shame all this story that happened or is happening to Red 5 and Firefall. I tried it some time ago and i know there was put a lot of effort into that game, but my impressions were that the game lacked personality,character and a certain wow factor that would impress players.
I think the developers could not achieve what they wanted to deliver with this game. I think the game is thrown out there but whit out a certain purpose
Shame. I wish all the best to the developer and hope that things turn around for them.

Krisnick 5 years ago
Why is this studio still in business?? Their game was in beta for like 5 years, which should be a huge red flag. The lead Dev on Firefall wasted a shit ton of money and is gone. Their game was mediocre at best.

I feel sorry for the Employee's...They really need to take their talents and go work for a better company.

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