Remember that rumor from EGM that pointed to a Dead Rising sequel coming from a Western developer? We heard a similar but slightly different rumor from a source that also says development duties are being shifted stateside, specifically at Vancouver-area third-party Blue Castle Games. If you're not familiar with the name, you may remember Blue Castle from its work on The Bigs for 2K Sports. While the relatively young, 100-person strong development studio is known for its multi-platform sports work, it is currently listing an unnamed "action game" for the Xbox 360 as one of three secret projects on its plate.

Recently added videos on the Blue Castle web site feature interviews with team employees who call one of their upcoming games "probably the most sought after projects in Vancouver" amid bleeps that might give some indication about what they're working on. Another interview with the art staff talks of working on "far more interesting things than stadium artwork" including "city streets, weapons and vehicles." While that in no way comes close to confirming that they're working on Dead Rising 2 for Capcom, the chatter we heard at last week's GDC makes it sound like the rumor has some basis in truth.

It wouldn't come as much of a surprise, as Capcom has shown that projects managed by its Japanese HQ and farmed out to Western talent is something the publisher is actively pursuing. Capcom has moved development on Bionic Commando, Dark Void and Okami for Wii to external teams, something it seems happy to continue doing.

When we contacted Capcom about Blue Castle's involvement, they opted to neither confirm nor deny the rumor. Likewise, our e-mails to Blue Castle went unanswered, so consider this rumor for now.

Source- http://kotaku.com/360639/dead-rising-2-coming-from-the-bigs-team