Perfect World completes Cryptic Studios acquisition
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Atari announced earlier this year that it was trying to sell off City of Heroes developer Cryptic Studios, and it's now essentially done just that, according to the company. Chinese MMO developer Perfect World recently bought an equity interest in the studio, and Atari has now divested its own interest, meaning that Cryptic is in the hands of the same company that also owns a majority interest in Torchlight developer Runic Games.
Perfect World reportedly paid $49.8 million for the sale, and Atari says it will put $30.7 million of that total right back into its own debt, leaving the rest for investment in other deals and programs. Cryptic was working on Neverwinter, as well as developing content for Star Trek Online and the free-to-play Champions Online, but any other titles the company was working on with Atari are probably done for. We'll have to see just how the fate of these games plays out as Perfect World oversees things going forward.
Perfect World has said the purchase will use Cryptic's experience in the MMO space to "strengthen our well-established R&D capabilities," as well as "add [the aforementioned] attractive game titles to our portfolio."
Perfect World reportedly paid $49.8 million for the sale, and Atari says it will put $30.7 million of that total right back into its own debt, leaving the rest for investment in other deals and programs. Cryptic was working on Neverwinter, as well as developing content for Star Trek Online and the free-to-play Champions Online, but any other titles the company was working on with Atari are probably done for. We'll have to see just how the fate of these games plays out as Perfect World oversees things going forward.
Perfect World has said the purchase will use Cryptic's experience in the MMO space to "strengthen our well-established R&D capabilities," as well as "add [the aforementioned] attractive game titles to our portfolio."
Reader Comments (10)
Posted: Aug 9th 2011 8:09PM (Unverified) said
so sad they didnt gut cryptic... if i had the money i would have bought them then fired every employee and would dissolve the studio they are possibly the worst dev studio in the world.
Posted: Aug 9th 2011 9:33PM DaRabidDuckie said
"as Perfect World overseAs things going forward"
I see what you did there.
I see what you did there.
Posted: Aug 9th 2011 9:44PM The Only Girl said
I like perfect world but they're becoming Nexon 2.0.
Posted: Aug 10th 2011 4:38AM Z3R0B4NG said
As Star Trek Online Lifetimer i can only say...
hooray and f0000 ATARI !!!
that company boned me on every game i ever bought from them!
after boning me on TDU1 + even worse on TDU2 and now getting rid of Cryptic you finally have lost me as a customer.
Not one more cent i will put in that company.
Cryptic shall live long and prosper, and most of all i hope that our new Chinese Overlords will grant us a lot more Devs who actually work on Cryptic's games+engine (actually Cryptic is hiring right now).
ATARI knew a long time ago that they want to sell Cryptic, so they did not invest more then necessary and we, the customers, felt that for months now.
hooray and f0000 ATARI !!!
that company boned me on every game i ever bought from them!
after boning me on TDU1 + even worse on TDU2 and now getting rid of Cryptic you finally have lost me as a customer.
Not one more cent i will put in that company.
Cryptic shall live long and prosper, and most of all i hope that our new Chinese Overlords will grant us a lot more Devs who actually work on Cryptic's games+engine (actually Cryptic is hiring right now).
ATARI knew a long time ago that they want to sell Cryptic, so they did not invest more then necessary and we, the customers, felt that for months now.
Posted: Aug 10th 2011 7:37AM Evi1Genius said
@Z3R0B4NG
I heard China banned star trek, so I doubt a Chinese company will have an incentive to let Cryptic continue work on STO.
Cryptic will have other projects to work on now.
Reply
I heard China banned star trek, so I doubt a Chinese company will have an incentive to let Cryptic continue work on STO.
Cryptic will have other projects to work on now.
Posted: Aug 10th 2011 9:58AM Faith said
@Z3R0B4NG Actually it was Craptic who was doing all the boning to you. You'll see, nothing will change and STO will still focus all of their resources on creating more microtransactions that make absolutely no sense for the timeline the game is supposed to be taking place in.
Reply
Posted: Aug 10th 2011 12:16PM Z3R0B4NG said
@Faith
first: Cryptic has nothing to do with TDU. (which is half of what i was talking about)
i don't care about a few *Microtransaction DLC* thinigies
some are worth it, others aren't
(no i will not buy a sparkling Horta!!! TOS Bridgeset Replica? more please!!! )
I know the few DEVS that are actually working on the game are doing a good job, they just have a way too small team to actually deliver the things they keep talking about.
Schedules, PR, Support are all Publisher things -> ATARI
The PR stuff was one of the worst things in STO.
ATARI also was responsible for the translation of the Game, needless to say that the translations to German and France were stopped some time ago, the game is now unbearable if not set to English.
And that is only the tip of the iceberg.
conclusion: f000 ATARI
Reply
first: Cryptic has nothing to do with TDU. (which is half of what i was talking about)
i don't care about a few *Microtransaction DLC* thinigies
some are worth it, others aren't
(no i will not buy a sparkling Horta!!! TOS Bridgeset Replica? more please!!! )
I know the few DEVS that are actually working on the game are doing a good job, they just have a way too small team to actually deliver the things they keep talking about.
Schedules, PR, Support are all Publisher things -> ATARI
The PR stuff was one of the worst things in STO.
ATARI also was responsible for the translation of the Game, needless to say that the translations to German and France were stopped some time ago, the game is now unbearable if not set to English.
And that is only the tip of the iceberg.
conclusion: f000 ATARI
Posted: Aug 10th 2011 7:07PM (Unverified) said
@Evi1Genius Perfect World didn't buy Cryptic to make games in China.
They bought it for two reasons:
1) They want the engine sourcecode to make better games in China with Chinese dev teams.
2) They want to do more business in the U.S. and recognize that the Chinese model doesn't work as well here and Chinese MMO IPs don't sell as well here. So they probably want Cryptic to make MMOs targeted at English speaking and European MMO markets, not Chinese audiences (where Perfect World is already much bigger than WoW).
They bought a western company to produce games for westerners, not the Chinese market. They already dominate in China. What they want is non-Chinese markets. Technically, I believe Cryptic falls under Perfect World International which is an American company owned by a Chinese company. They produced Torchlight with their other company Runic Games. They've been trying, unsuccessfully, to make MMOs targeting Americans and the acquisition of Cryptic is a set towards that.
To everyone else, I agree about the size of Cryptic's dev teams. I think Atari bought Cryptic thinking that an MMO is like a console game that people pay a monthly fee for and have had unrealistic expectations. Cryptic brought in more capital than they'd seen in years, going by financial statements, but you have to reinvest all of that back into an MMO for the first couple of years, particularly when you launch games with a short development cycle like Cryptic does. You have to be prepared to sink the money back into the game for 2-3 years and I don't think Atari could handle that or had an interest in spending money to build marketshare and prestige.
Perfect World seems more interested in that.
Reply
They bought it for two reasons:
1) They want the engine sourcecode to make better games in China with Chinese dev teams.
2) They want to do more business in the U.S. and recognize that the Chinese model doesn't work as well here and Chinese MMO IPs don't sell as well here. So they probably want Cryptic to make MMOs targeted at English speaking and European MMO markets, not Chinese audiences (where Perfect World is already much bigger than WoW).
They bought a western company to produce games for westerners, not the Chinese market. They already dominate in China. What they want is non-Chinese markets. Technically, I believe Cryptic falls under Perfect World International which is an American company owned by a Chinese company. They produced Torchlight with their other company Runic Games. They've been trying, unsuccessfully, to make MMOs targeting Americans and the acquisition of Cryptic is a set towards that.
To everyone else, I agree about the size of Cryptic's dev teams. I think Atari bought Cryptic thinking that an MMO is like a console game that people pay a monthly fee for and have had unrealistic expectations. Cryptic brought in more capital than they'd seen in years, going by financial statements, but you have to reinvest all of that back into an MMO for the first couple of years, particularly when you launch games with a short development cycle like Cryptic does. You have to be prepared to sink the money back into the game for 2-3 years and I don't think Atari could handle that or had an interest in spending money to build marketshare and prestige.
Perfect World seems more interested in that.
Posted: Aug 10th 2011 10:18PM nomore7734 said
Perfect World completes Cryptic Studios acquisition
by Mike Schramm on Aug 9th 2011 7:45PM
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Atari announced earlier this year that it was trying to sell off City of Heroes developer Cryptic Studios
City of Heroes.. what?





