Vancouver based studio Slant 6 Games is jointly developing a Resident Evil project, publisher Capcom has announced.

The studio, recognised for its work on the Socom franchise, is “collaborating” with Capcom to build a new action title, entitled Resident Evil: Operation Raccoon City.

Slant Six Games suffered its own layoffs last year, signifying ongoing struggles that the Vancouver region is facing.

In January, Disney closed Vancouver studio Propaganda Games.

Meanwhile, nearby outfit United Front Games is braced for layoffs following a particularly humiliating cancellation of its project, True Crime. An Activision exec said the project wasn’t good enough.

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One theory for the struggles in Vancouver is how fellow Canadian provinces, such as Nova Scotia and Ontario are absorbing talent.

Developers first aired their views on the matter in 2008, with a news report claiming they were "voicing concern that generous incentives in Montreal are luring talent and investment at the expense of the industry in British Columbia".

The Slant Six Games deal will be seen as a welcome change for the region.

Capcom has issued mixed messages on its plans to collaborate with western studios, though in recent months has poured investment into Canada and the UK.

It bought British Columbia outfit Blue Castle Games last year.

Meanwhile, the publisher has partnered with UK studio Ninja Theory to revive the Devil May Cry series.