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Factor 5 Germany Confirms U.S. Studio Closure
Factor 5 Germany Confirms U.S. Studio Closure
May 14, 2009 | By Leigh Alexander

May 14, 2009 | By Leigh Alexander
More: Console/PC

The German division of Lair creator Factor 5 has confirmed that the San Rafael, CA-based U.S. developer has closed, following recent financial trouble.

"We are sorry to announce the closure of the San Rafael-based Factor 5, Inc. studio, but the obstacles created by the sudden bankruptcy of Brash Entertainment for the continuation of operations have turned out too great to overcome in the current economic climate," said CEO Achim Mollar.

The European division, Factor 5 GmbH is headquartered in Cologne, Germany, and Mollar says it is "entirely unrelated to Factor 5, Inc. and the circumstances surrounding Factor 5, Inc.'s recent challenges."

Reports of heavy layoffs at the studio late last year raised speculation around its imminent closure as far back as December.

The U.S. arm of the company, headed by Julian Eggebrecht, was best known for Star Wars: Rogue Squadron and early PlayStation 3 title Lair. The latter received a high pre-release profile, but was critically panned and commercially unsuccessful.

The closure of Brash Entertainment hit the studio hard. The movie license-focused publisher's titles were poorly received almost immediately on its entry to the market, and it soon saw an exodus of investors and executives.

The publisher's collapse -- compounded by the simultaneous advent of the economic recession -- had reverberations for any studio depending on a deal with Brash, such as 7 Studios, which was acquired by Activision after struggling financially.

"Although we are saddened by Factor 5, Inc.'s situation, our corporation will remain unaffected by these developments and has partnered with both old and new friends in the industry who will reveal our upcoming projects over the next months," Mollar says.

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Mark DeLoura
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This is really sad news. Factor5 had a great team, some of the best tech out there, and the projects they were working on looked amazing. Best of luck to Julian and all the Factor5, Inc family.

Adam Piotuch
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So I guess we won't see any Rogue Squadron hit VC any time soon? One of my favorite companies, now gone. What exactly has the German arm produced lately?

brandon sheffield
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If I had to venture a guess, I would say that the German roots of the company allow the name to be retained there, and Mollar is likely trying to rebuild the business from there. The company basically only existed in San Rafael since the 90s, as far as I know, so this seems to me like an attempt to restart, rather than the simple closing of one branch of a company.

Aaron Casillas
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David Rodriguez
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Rogue squadron was easily my favorite flyier series that I've bought. They just knew how to make a completly bad-ass game. I have faith that a lot of these talents will relocate well. As for Brash, I've talked with recruiters and to say the least the ex-brashes are better off not listing their last company on their resume.

Jeff Zugale
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Ouch, more victims of Brash. I feel your pain, Factor 5-ers, yes I do. Best of luck to you all.