Factor 5 is set to work on games for PlayStation 3's e-Distribution Initiative (EDI) service once it's done with Lair.
"I'm really looking forward to 2007, because we're going to finish Lair, which is my biggest concern right now, but also, I'm really looking forward to working on a couple of smaller projects, with the so-called EDI from Sony," said company president Julian Eggebrecht, speaking to Gamasutra.
Eggebrecht went on to say that he believes EDI has "huge potential". "I think it's one of these things that we in the creative community need a little bit," he added.
EDI games are seen as Sony's natural competitor to Microsoft's Xbox Live Arcade titles, offering smaller experiences exclusively for download through the PS3 Store. Initial offerings include shoot-'em-up Blast Factor and Cash Guns Chaos, with another title, flOw, due to go live in December.
Xbox Live Arcade has a significant lead over it in terms of content depth and variety, but Sony hopes that differences like a higher maximum file-size, and the interest of renowned developers like God of War's David Jaffe, will help it catch up.
Factor 5's Lair, meanwhile, is due out in 2007. See elsewhere for Rob's extensive Tokyo Game Show impressions.