"The last time staff got paid was October 15th," the anonymous source told Edge. According to the source, 37 employees were laid off on Friday, December 12, with roughly 38 people remaining at the besieged developer.

While the closure of publishing partner Brash Entertainment definitely hurt Factor 5, the extent of its problems wasn't known until then-animator Sam Baker blogged about the issues, detailing a cancelled project, no pay, and no employee health care.

Baker has since resigned from the studio, said the source, adding that "Factor 5 is thinking of suing [Baker] for good measure."

"He's young, and was totally devastated by his new found fame," the source said of Baker. According to Baker's now-removed blog, he recently celebrated his first year in the industry. "He didn't think anything of it, innocently posting his heartfelt concerns."

However, problems at Factor 5 started long before Brash closed up shop, claimed the source. He explained: "The thing that bothers me the most about it all is they could have avoided all of this ages ago. It wasn't really the Brash deal going south that was the big problem, but it didn't help much either."

Factor 5 is known to have multiple projects in development, one of which is rumored to be a new Superman game. The Superman game was reportedly being made in conjunction with Brash, but was not the project postponed earlier this month.