Taken from the Matt’s blog from the IGN boards.

Was hoping the rumors weren’t true. Contacted Julian over at F5 to shed some light, but he didn’t get back to me. Got an e-mail from an inside source tonight:

“Hi Matt,

How have you been? Haven’t seen you guys since E3. I hope that you’re doing well!

[Edit] wanted me to contact you with some late breaking news. We just learned from inside sources that developer Factor 5 has officially closed their doors as of today. That’s some pretty big news considering that those guys have been around for quite a while. It’s definitely a real shame! I hope that this information is helpful to you. Take care, and please say hi to Bozon for me.”

Beh. Not sure what this does to Kid Icarus, either, but it sure doesn’t sound good. I’ll keep you posted. I’m still holding out some kind of hope there may yet be a light at the end of the tunnel.