As part of its continuing effort to streamline operations, Capcom is eliminating its subsidiary developer Flagship (not to be confused with Hellgate: London developer Flagship Studios).
In its year-end financial report today, Capcom updated investors on the status of some of its streamlining efforts, saying that Clover Studio was in the process of being dissolved and Studio 8 was completely consolidated as of March. The next Capcom label to fall will be Flagship, as Capcom is set to merge with--and then dissolve--the subsidiary June 1.
Flagship was established in 1997 and worked with Nintendo to develop a number of portable hits, including The Legend of Zelda: The Minish Cap and The Legend of Zelda: A Link to the Past (with its Four Swords addition) for the Game Boy Advance, as well as the Game Boy Color Zelda titles Oracle of Seasons and Oracle of Ages. Flagship also developed Kirby and the Amazing Mirror on the GBA and Kirby Squeak Squad for the Nintendo DS. While Flagship did venture into game design with certain titles, its primary purpose was to work on the storytelling and dialog aspects of games from Capcom's other studios.
[UPDATE] According to a Capcom spokesperson, while the Flagship name is getting the axe, its employees won't be. Noting that the only thing to change will be the company name on their business cards, the spokesperson said all Flagship staffers are expected to continue working at the publisher in the same capacities.