Report: Factor 5 Unable to Pay Employees, Postpones Unannounced Project

Star Wars: Rogue Squadron series and Lair developer Factor 5 has been unable to pay its employees for over a month due to the closure of publishing partner Brash Entertainment, according to a now-removed blog post from animator Sam Baker.

"If we left, there would have been no hope in F5 staying afloat," he wrote. "We had faith in the projects and the company, so there was no reason to bail just yet."

The crisis then caused the studio to stop production on one of its titles after cutting employee health care, with Baker told by president Julian Eggebrecht that employees should start looking for other jobs if the more funding wasn't found within a week.

Following a 1UP report on his post, Baker deleted the entire blog, claiming it was "easy to misinterpret." He also clarified that the halted project was not the game being made for Brash Entertainment--rumored to be a Superman title.

"The other projects currently under way at Factor 5 are doing great," he stressed. "We hadn't received payment because of the situation with Brash, which is why I said I needed to look elsewhere for work."

After Brash closed, president and co-founder Eggebrecht revealed that Factor 5 had "several projects, both multi-platform as well as single-platform titles for the Wii which you will hear a lot more about very soon," adding that "things are obviously in flux and we hope that the game proves to be as indestructible as our hero."