Well Crytek is going to be the first victim of next gen. Can't say I'm shocked. They made big budget B games that sold like b games. I never thought the Crysis games were bad, but at the end of the day they are pretty forgettable FPS that probably cost a lot of money to make. The return on that engine never seemed to come either as really how many games even use the Cry Engine? Never seemed to be that many and I'm not surprised at that. It never seemed to show off as well as Unreal which was at least usable on the previous consoles. So Unreal 3 ate the cry engine's launch for that block of consoles and now it seems for next block many companies are more interested in developing thier own in house engines or sticking with Unreal. Not much space for an engine that never seemed to be presented well.
On top of that Crytek seemed to expand really fast and yet it never seemed like any of thier games were huge hits. I sure doubt Homefront 2 would be a huge success.
If they go, it sucks for all those workers. Still, I never thought Crytek made anything that was really standout.