California-based game developer Red 5 (Firefall) was unable to pay its staff on December 25--Christmas Day. That's according to several sources cited in a new report from Kotaku today.
Paychecks at the studio are usually delivered every other Friday. However, staffers didn't get paid on December 25, and some were reportedly sent the following memo:
"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."
As Kotaku explains, Red 5 has faced challenging times of late, including the ousting of some of its founding staff in recent years. Chinese company The9 bought a majority stake in Red 5 in 2010. In 2012, the studio announced plans to open a European headquarters in Ireland, creating 30 jobs as a result.
Kotaku was unable to reach Red 5 for comment. We have reached out to the company and will update this post if any new information becomes available.
The company's main studio is in Laguna Hills, California. Red 5 was founded in 2005 by a number of former Blizzard Entertainment employees.