Factor 5 Animator Claims Studio Is Cutting Projects

Studio may need to lay off employees if funding isn't found.

Factor 5, who brought us Lair for the PS3, is going to be cutting new projects to avoid bankruptcy.

Developer Factor 5 is facing tough choices due to our bad economy, according to a blog post from Sam Baker, an animator for the company. Baker explains that after a two-week foray to work with California-based animation studio The Orphanage, he came back to Factor 5 and found that none of his fellow employees had been paid in the past month. His team continued on their current project, but then had their health care benefits taken as a cost-saving measure.

Next, the company told employees that they had to shutter the current project due to insufficient funds. "We figured it wasn't a problem, however, because there were still other projects that needed us," he said. But most recently, Baker claims that Factor 5 president Julian Eggebrecht told the employees that they need funding in a week, or employees may need to start looking for other jobs. This is all the word of one blogger, so without official comment from the company we'll file it as a rumor for now. We can hope that the situation isn't as dire as it sounds, but if it is Factor 5 may need to start letting go of employees within the next week.

Baker doesn't mention any of the projects the company had in the pipeline, but we know that the company was working on a Wii title, rumored to be a new entry in the Rogue Squadron series, or a revival of the SNES classic Pilotwings. Factor 5's last big game was Lair, which was received harshly by critics due to imprecise motion controls. The company has been known for pushing hardware, so fans hoped the next game would showcase their skills. Unfortunately, due to the bad economy, they may never get the chance. We'll keep you posted as we learn more.