Update: According to the same rumor source, the more hardcore Factor 5 game is not Star Wars or Star Fox, it began production in August 2007, and the shooter title technically could still be Kid Icarus granted the shooting elements translated into a Kid Icarus game.
Everyone is pretty much aware with the situation of Factor 5 and Kid Icarus. The company has been rumored to be developing a title in the series for Wii for quite some time now. However, according to new speculation, the projects that Factor 5 have in development are not Kid Icarus-related.
The company is apparently working on two titles for the Wii. One is a casual game while the other is supposedly a third-person shooter. The unnamed shooter is said to allow players to take action on both the ground and in the air. If the casual game is not Kid Icarus, then it looks as though Factor 5 may not be in charge of any such project that has been previously rumored.
As you may remember, leaked concept art for a Kid Icarus title was revealed a few months ago. Alongside that story came more rumors that Factor 5 was sending an approval to Nintendo for a new title in the series. Additionally, Nintendo was alledgely upset that Kid Icarus would not make an appearance at E3 2008 because Factor 5 was dealing with internal problems.
There are a few questions that arise now: Is Factor 5 really not developing a Kid Icarus game for Wii? Is another company overseeing the project? Or was all of the speculation entirely incorrect in the first place?