It's starting to get a little depressing, having to write post after post about developers shutting down. Yet, here we are again. In a post on the IGN forums, Matt Casamassina claims an inside source has revealed to him that the developer behind Lair took their ball and went home on Friday.
The company, which released their first game back in 1988, was also responsible for the Star Wars: Rogue Squadron and Turrican series. Murmurs have been circulating for several months that Factor 5 was developing new Kid Icarus and Superman games.
I'm still classing this as rumor, for the time being, since there's no attributable name to Casamassina's source. Still, with their last game a flop (for good reason), a recent blog post from an artist at Factor 5 claiming dire financial straits and plenty of other devs cutting staff or going under completely, it sounds quite probable.