Legal challenges from a game engine is something that can scare away new projects in that engine. This wouldn't affect most developers as Star Citizen signed with CryEngine but it won't be attracting people to use CryEngine over others anytime soon.
Crytek is one of those companies that has great game engine tech but got high-centered when Unreal and Unity went free in 2015. Crytek is from the age of game development where licensing per game could run up above 300k for licenses and/or percentages that were much higher than today (Today Unreal is free but 5% royalties of gross over 3k quarterly -- but previously was 300k for the license -- Unity free up to 100k revs and $35/$125 Pro with no royalties, previously it was $1500 a year minimum). Crytek has been in a reactionary mode since 2015 when they also had to significantly change their model due to Unity/Unreal competitive moves.
Unreal at 5% royalties over 3k a quarter, Unity at free to 100k annually and $35/$125 Pro after that and even Crytek at $50/mo, all are very helpful for game development skills. Previously when engines were hundreds of thousands for a license it was hard to even gain skills beyond modding tools for engines and game companies had to shoulder all the training costs of even good game devs. Today, Unity/Unreal skills are much easier to find because of the low cost of entry. Ultimately the change to subscriptions and low cost (relatively) of the licenses allows a good market for developers investing in skills that will immediately translate at the game company they are working at, much easier to hit the ground running. Ultimately access to the engines is more valuable than the up-front costs of the past. Crytek is still dealing with that competitive pressure most likely.