Baker had originally posted on his blog (now removed) that after a two week stint working with a California based animation studio, he arrived back to Factor 5 finding his fellow employees unpaid for the past month. Things went from bad to worse, with his team losing their health benefits, and the company telling employees that they had to shutter the current project due to insufficient funds.
Gaming site 1up noticed the blog and ran a story highlighting the concerns for the future of Factor 5, using Baker’s blogged news post regarding the state of the company. Realizing his mistake of releasing potentially sensitive information, Baker removed the original blog post, replacing it with one claiming that the news was a misunderstanding saying, "This does not mean that we've stopped production on that game, or that it was even in trouble." Despite this, it was clear that something was amiss and that the original post was indeed quite clear in what it was trying to communicate.
Speculation was further fueled with an Edge Online article, noting a source who was said to confirm that all of Baker’s original information was true and he had since resigned from the company, and that they were even considering suing.
A post over at the IGN message boards by Casamassina seems to confirm the fate of Factor 5. The post, which details an email from another inside source known by Casamassina, states that “We just learned from inside sources that developer Factor 5 has officially closed their doors as of today.”
While there is no official confirmation as of yet, the building evidence, coupled with the current economic downturn, suggests Factor 5 is indeed closing up shop. When more information is known, we will let you know as soon as possible.
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