Blue Castle making Dead Rising 2

A source close to Canadian developer Blue Castle Games has told Eurogamer that the studio is making a sequel to Dead Rising.

Rumours that the Vancouver-based outfit was working on the zombie project first emerged last year, but neither the developer nor publisher Capcom has confirmed anything on the record. But while Eurogamer was on a secret mission in Vancouver last week, we were told by a source familiar with the project that Capcom has indeed farmed out development to the Western team.

The source said: "Everyone's really excited; the team has obviously seen the rumours and it's been hard to keep quiet, but they can't wait to show off the game."

Unfortunately, they wouldn't give us any details on the title or when we're likely to see it. Boo.

Blue Castle has so far released two baseball titles with 2K Games, including The Bigs, and announced MLB Front Office Manager earlier this month.

The company describes itself on its website as "a full-service, multi-project and multi-platform 3rd party developer located in Vancouver, Canada", where: "We are well underway on three new projects - an unannounced Action title and two Sports titles one of which was just announced."

Our source confirmed that the action title is a sequel to the deliciously enjoyable zombie romp, which released on 360 in 2006. The studio is currently hiring for its action project, with one job listing stating: "It's getting around - there is something amazing being built here at Blue Castle behind locked doors."

A spokesperson for Capcom Europe refused to comment on the matter.