Setup Before playing, set up the game as follows:

1. Choose a Faction: Players agree on which factions to control. One player controls Rebels while the other controls Imperials. If players cannot agree, randomly assign factions. All components belonging to a player’s own faction are considered friendly, and all components belonging to his opponent’s faction are considered enemy.

So my question is in the Setup Rule 1, as above stated.

Can the three factions now compete all at once now there is three sides to play with. 3 vs game ?

If YES, then this also changes the tournament rules of play.

Has anyone else thought of this new issue?

Has anyone else thought of this new issue?

Yes. And then decided it isn't an issue.

--edit--

Maybe, just maybe it might become an issue if FFG doesn't address it in the release of S&V or by updating the FAQ.

But even then you'd have to be a special kind of rear end with a huge stick up his rear end to make it an issue.

Okay, so player A brings scum and player B is a special kind of rear end and says no. Rules say it now goes random, but does not say random between the two other factions. So now player B has a 67 percent chance (Never tell me the odds) of not playing his or her list because they get stuck with a different faction. On top of that what are the odds that they brought Scum? If random comes up scum and they can't play then the win goes straight to player A unless someone lends him a full scum list. Which brings me to my final point. Who's the bigger special kind of rear end; the special kind of rear end or the special kind of rear end who gives him his scum to play with?

You really don't think there'll be an FAQ almost immediately after S&V is in stores addressing this as well as tournament play?

It's really not an issue.

Three players competing at the same time on a 3 x 3 mat is going to be special.... really special.

I don't see this as an issue at all but I'm asking if its possible for 3 players to play at the same time given the three varying factions types.

I am scum..δΦ

Okay, so player A brings scum and player B is a special kind of rear end and says no. Rules say it now goes random, but does not say random between the two other factions. So now player B has a 67 percent chance (Never tell me the odds) of not playing his or her list because they get stuck with a different faction. On top of that what are the odds that they brought Scum? If random comes up scum and they can't play then the win goes straight to player A unless someone lends him a full scum list. Which brings me to my final point. Who's the bigger special kind of rear end; the special kind of rear end or the special kind of rear end who gives him his scum to play with?

You forget option C: you walk away and find someone worth playing against instead of a special kind of rear end for whom the letter is more important than the intent.

I doubt you will see 3 man free for all rules in an official tourney setting...far too complicated to balance at this juncture...

Three player games always suffer from a "kingmaker". As soon as a player decides they cannot win, they can choose who will win.

Only way it will work maybe is rebels can only attack scum who can only attack imperial who can only attack rebel or some variation.