Signal Studios has announced the development of Toy Soldiers: Cold War, the sequel to Xbox LIVE Arcade hit Toy Soldiers.

The first game has been purchased 500,000 times on Xbox LIVE Arcade.

Toy Soldiers: Cold War promises hours of intense combat combined with addictive action strategy gameplay. Superpowers will collide in this homage to '80s action toys and films.

Command the powerful Cold War arsenals of the USA or USSR armies, playing alone or jumping into the fray with your friends in campaign, co-op, or competitive modes.

Toy Soldiers: Cold War features

Fight the good fight! The Wall did not come down! Control the entire might of the Stars and Stripes to stop the invading forces of the Evil Empire! On land or in the air - drive, fly, and battle your way to victory!

Highlights: Command the USA and USSR armies with brand new modern weapons and vehicles. Multiple Attack Barrages, Co-op or Single Player Campaign, improved Multiplayer Action, Co-op Survival Modes including Classic, Lockdown, and Hardcore, and fast-paced competitive Mini-Games!

New Co-op Mode: Join forces with your friends and play on the couch or over Xbox LIVE in Campaign or Survival modes.

Modern Drivable Units: Hulking battle tanks, fierce attack helicopters, explosive fighter jets, ATVs and more!

Attack Barrages: Expanded barrage rewards, including First Person Special Forces soldiers, AC-130 gun ships, B-52 bombers, Artillery strikes and Nuke missiles.

Intensely Addictive Mini-Games! Take a break from the main battle and compete with friends online to rack up the high score in playful mini-games. Hidden challenges in each level encourage replayability and reward player skill.

New Secondary Turret Features: Grenade launchers, cluster bombs, scopes, missile locks, tactical vision, Overcharge Mode and more!

Additional Unit Trees: Take down the enemy with WD-40 flame throwers, fireworks, and bug spray!

Improved: Replayability is improved with Checkpoint Rewind; new and sophisticated driving physics; revamped dynamic destructible environments; new enemy wave behaviors and AI.

Signal Studios also confirmed that a PC release of the original Toy Soldiers is coming late spring/early summer 2011.