Capcom are going to be first merging with, then dissolving, their subsidiary studio Flagship on June 1. For those not up to speed on Capcom's order of battle, Flagship are Capcom's Zelda farm, the guys responsible for the latest handheld games in the series like the Link to the Past remake (with Four Swords), the Oracles games and Minish Cap.

While the studio itself is facing the chop, Capcom are stressing that none of Flagship's employees will be, and that they'll be "expected to continue working at the publisher in the same capacities". No idea how this will affect future titles, but if they're going to be doing exactly the same thing, why dissolve it? It was such a great name. Luke Plunkett

Capcom scuttles Flagship [GameSpot]