But if they don't have enough money then CIG goes bust, CryTek gets whatever they can, and what remains of the Star Citizen IP gets sold to another company or investors. Then it may not get developed or it becomes something else.
I can't see Star Citizen surviving. There is too much work still to be done, too expensive to run and there will be too much bad blood with the backers. CryTek might take the engine and game to integrate into CryEngine, but it might get that anyway.
Unless CIG have a strong defence somewhere - something better than admitting one charge in an attempt to deny another, which probably tells you all you need to know about the defence they can muster - Star Citizen is, IMO, dead.
We can't call it finished now because we haven't heard anything about it's side of the story. But CryTeks case seems fairly strong and straightforward and backed up by actual facts.
Did they switch engines, breaking the "exclusive use of CryEngine"?...yes
Did they provide confidential information to third parties?...yes
Did they stop promoting CryTek and CryEngine?...yes
Did they start to develop two games despite having only one CryEngine license?...yes.
Did they provide the updates and bugfixes they agreed to? Apparently not.
The weakest part of CryTeks case lies with S42. As a separate game, it is under no obligation to use CryEngine. It could easily use Lumberyard.
BUT...because CIG wanted to use the same engine to cut costs...it IS using the same engine as Star Citizen. Which appears to still be CryEngine, modified into StarEngine, with bits of Lumberyard added. So - it IS using CryEngine and they did break the exclusivity clause as well.
And buying a source code license doesn't absolve you from laws affecting IP or copyright or contractual obligations.
CIG appear to be in real trouble. Maybe they have a defence or maybe not.
But the likely outcomes, based on current knowledge, seems to be 1: CIG pays CryTek to go away. 2: CryTek wins and takes what it can, which will shut down CIG.
That isn't even considering the injunction CryTek are seeking, which would stop CIG working on anything to do with CryEngine. Nor is it counting with Coutts may do when they realise their loan collateral just went up in smoke. CIG had no right to use CryEngine code as collateral....it wasn't theirs and the IP is worthless if the game isn't finished.
So - it is beyond comprehension why CIG didn't settle this before now. Unless, as I said before, they either can't pay or have a strong defence.