Dead Rising 2 development under way?

Blue Castle handling development of the highly anticipated sequel.

Eurogamer reports that Canadian developer Blue Castle (The Bigs) is hard at work on Dead Rising 2, the sequel to Capcom's popular zombie action game.

A source close to the developer 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."

The first Dead Rising game starred photojournalist Frank West who had to fight for his life after being trapped inside a shopping mall infested with zombies.