Eurogamer cites an anonymous source inside Blue Castle who is reportedly working on the zombie-killing action game. "Everyone's really excited; the team has obviously seen the rumors and it's been hard to keep quiet, but they can't wait to show off the game," said the source.

The original Dead Rising released in 2006 to critical and commercial success on the Xbox 360. A Wii version is in the works, and Capcom has teased that players "haven't seen the last of Dead Rising" on Sony's official PlayStation forums, signaling that the game could be headed for the PlayStation 3 as well.

Blue Castle, founded in 2005, is best known for the arcade-y baseball game The Bigs (360, PS3, PS2, Wii, PSP).

Capcom has not commented on the matter, but partnering with a Western company on a multi-platform game does fit the publisher's stated strategy very well.