Illfonic were experienced developers with CryEngine too, that's why CIG trumpeted hiring them for the FPS portion of the games. Unfortunately they were poorly managed by CIG, resulting in most of the work being scrapped or redone, the details of which only became public thanks to a Kotaku UK investigation.
In 2013 CIG contracted Illfonic, a third-party studio based in Denver, to build the Star Marine module and the first-person systems needed for Star Citizen.
So, in 2013, Roberts had two studios, multiple contractors, and three third-party studios working on an already ambitious game that was only growing more complex
Illfonic worked on Star Marine for nearly two years, but production issues like the one above have meant that nothing it worked on has been released, and much of what it did create has been rewritten by CIG.
The worst example of wasted effort was discovered towards the end of Illfonic’s time on Star Marine: CIG found that the entire map was built to the wrong scale.
Unfortunately, the assets that Illfonic had created for the Gold Horizon level did not fit into the levels that CIG had built. CIG asked lllfonic’s artists to remake the lot.
“I'm always very perplexed by this,” Roberts told me when I asked how this happened. “We got everyone together and had a whole art summit in Austin in 2013. I thought we were all on the same page but I guess at some point we weren't.”
It all seems to come down to a lack of producers on an already-stretched team. There was no one person in a position to spot these problems. Months of work had to be redone to fix the scale problem.
Meanwhile at Illfonic, the work to get the Star Marine it had created to work with the ever-changing Star Citizen was becoming a real burden for the studio. Star Marine was delayed, and delayed again. One source told me that eventually Chris Roberts asked Illfonic if it could reconcile the problems in the FPS module, and the company instead ended its partnership with CIG. “Illfonic sent the email,” a source tells me. “It was a mutual thing but Illfonic sent the email.”