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.