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Multiple sources have confirmed to VG247 that Free Radical is, indeed, closed.

[Register or Login to view links] has posted up a lengthy account of recent events at the firm from what looks to be a good source. Apparently founder Dave Doak left earlier this month, and is now in the process of setting up a new developer with co-founder Steve Ellis called Pumpkin Beach.

Free Radical was working on Battlefront III for LucasArts until recently, but the project was pulled, supposedly relocating at Rebellion.

Haze is cited by the Edge source as being the final nail in the coffin, along with the failure to seal the deal with Lucas.

"They had already started working on TimeSplitters 4, and had been for over a year, but due to the failure of Haze and the deal falling through with Lucas, they couldn't get a publisher to back them," said the source.

"They had a last ditch attempt last week down South somewhere, but it came to nothing so I think that was the last hope."

The gossiper continued: "People have been leaving in droves due to lack of security, poor treatment of staff, better offers and guaranteed work from other local developers such as Monumental Games and one in Derby whose name escapes me [Rebellion has a Derby location - Ed]."

To the 150-200 staff now looking at a salary-free Christmas - we salute you. More PlayStation 3 News...