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What is going on at Red 5 Studios?

Reports on Monday indicated that the developer behind the PC massively multiplayer online shooter Firefall failed to meet its employee payroll on Christmas day. However, Red 5 now tells GamesBeat that this is untrue.

“Red 5 Studios, Inc has paid all employees in full,” Red 5 told GamesBeat. “Recent rumors of Red 5 Studios’ financial situation are not accurate.”

If true, one has to wonder why Red 5 took so long to disclaim these reports, including one from Kotaku. That story from Kotaku was updated today to note that employees were paid today. While that’s good for them, it doesn’t make previous reports that payroll wasn’t met on time inaccurate, as Red 5 claims. It does explain why it waited until today to contact us.


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Former Blizzard employees, many of which worked on the massively multiplayer online role-playing game World of Warcraft, started Red 5 in 2005. Firefall launched in 2014, and Red 5 tells GamesBeat that it is working on major content updates and a Chinese open beta for the game.

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