Lair developer Factor 5 are struggling, the game maker announcing lay-offs, while employees haven't been paid for over two months, Edge reports.

According to the new report, the Californian developer has been forced to lay-off 37 members of staff on Friday - with 38 game makers remaining at the San Rafael firm.

Worryingly, staff at the firm haven't been paid since October 15th, although we hear talk of those laid-off getting back pay this week.

Apparently, the developer has been seeking fresh funding, while a project that had been underway for eight months was canned (this has been linked with defunct publisher Brash).

More on Factor 5's plight as we get it.

By Luke Guttridge