That's not entirelly correct.
Crytek developed Far Cry(1) on it's own CryEngine(1) as a techdemo for nVidia, but it grew during development into a full game. UbiSoft then bought both CryEngine(1) and Far Cry(1) from Crytek. Later Crytek moved on to Electonic Arts, and developed CryEngine 2, on...