Factor 5, developers of the Rogue Squadron series and Liar, has announced that the San Rafael based studio is shutting down. This is due to the bankruptcy and failure of Brash Entertainment, a leading investor in the San Rafael based studio

However, Factor 5′s German studio — and headquarters — located in Cologne, Germany, is unaffected by the closure and will continue normal operations.

After Lair received disappointing reviews, Factor 5 announced that they would be moving back to developing for Nintendo. Naturally, everybody began speculating that Factor 5 may be working on a new Rogue Squadron title. Well, according to a rumor, Wii owners might be getting the next best thing. Apparently LucasArts has licensed out all of the Rogue Squadron games to another publisher. The supposed purpose of this is so that the publisher in question can put all three (both Gamecube titles and the Nintendo 64 original) on a single Wii disk. The disk will possibly be put under the “Play for Wii” brand. Keep in mind, though, at this point it is only a rumor and nothing official has been announced.