In early 2008, German-based Factor 5 had signed a multi-game development deal with Brash Entertainment, but due to the publisher's demise, Factor 5 found itself in a tight spot later in the year and was forced to lay off half of its staff. Now things have taken a turn for the worse, as Factor 5 announced that it has closed down its California studio, known for Lair and Star Wars Rogue Squadron III, as it was no longer able to keep it open due to the aforementioned issues.