While many Japanese developer's American offices are dedicated to localization, Level 5's Santa Monica office is actually going to be working on games focused on the western market. The staff currently consists of 5 Japanese developers, but the studio intends to collaborate with local industry vets to produce something more in line with American tastes. Does this mean guns and bald space marines? I hope not. The low number of staff suggests social gaming, digital download or even mobile development to me. Five people probably aren't going to cut it for retail 3DS or NGP games. I will be interested to see what they announce at the Level 5 Vision event said to be taking place this August.
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