Rogue Squadron and Lair developer Factor 5 is officially closing the doors of its US branch, while the separate German division of the company will continue to operate.

“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 in a message on the Factor 5 site.

Brash Entertainment went bankrupt last November, at which point Brash dropped the Superman project they had with Factor 5. Superman seemed to have been keeping the developer on life support.

Factor 5’s German studio is “entirely unrelated” to the situation over at the San Rafael, CA branch, and will continue operations as usual. “Although we are saddened by Factor 5 Inc’s situation, our corporation will remain unaffected by these developments and has partnered with new and old friends in the industry who will reveal our upcoming projects over the next few months,” Mollar said.

Factor 5 was best known for its Rogue Squadron games and most recently, Lair, a much-hyped PS3 game that bombed with critics and gamers alike.

“The current transition of the games industry is challenging, but as with transitions prior there is more opportunity than ever for independent development out there,” Mollar concluded.

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