It was confirmed that Factor 5 was working on *something* for the Wii. Whether it was a project in cooperation with Nintendo, a Nintendo IP, or something they were doing on their own, is totally unknown.
Equally, Factor 5's "closure" is yet to be anything but rumor. I would think if they were working on a Nintendo IP, they wouldn't close. Such a game would be almost guaranteed to profit. They would simply downsize out the less promising projects, which has been confirmed also
Now, whether or not that is Kid Icarus is still speculation. I say no.

Monster Hunter: pissing me off since 2010.







