Tomonobu Itagaki is one of the most outspoken and sometimes controversial video game developers out there. His development team at Tecmo, called Team Ninja, was responsible for Dead or Alive and the re-imaging of Ninja Gaiden, which resulted in one of the best action games out there. After working at Tecmo for a long time, Itagaki decided to go his own way after a desagreement with the company and started Valhalla Game Studios. Now, Itagaki has announced Valhalla’s first title: Devil’s Third.

Tomonobu Itagaki, the former Team Ninja head who sued Tecmo over unpaid wages, announced a settlement February 26, 2010, with his former employer. Itagaki filed suit in June 2008 claiming unpaid wages and disingenuous statements by former Tecmo CEO Yoshimi Yasuda. No details of the settlement were given, so instead of juicy financial news Itagaki’s release teases us by talking about an upcoming project.

Tecmo will be redefining the word “handheld” with its latest announcement, Dead or Alive Paradise, which promises to bring everyone’s favorite batch of barely clothed busty babes to Sony PSP owners in Japan this coming Spring 2010.

Paradise is what you might call a stripped down (pun intended) version of the Dead or Alive Xtreme Beach Volleyball (DOAX) series. DOAX is a game that revolves around the lovely ladies of the DOA series prancing around in sometimes barely-existent bikinis on a beautiful private beach doing anything but fighting.