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Updated 09-09-2013
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Lost Planet 3

Farming out the development of a respected IP can work wonderfully. Just take a look at Dead Rising 2, a solid attempt to follow-up an insanely popular zombie-fest with mostly positive results. Blue Castle Games did such a good job that it was actually acquired by their employer as Capcom Vancouver.

On the flipside, Lost Planet 3 is a perfect example of how farming out existing IPs to western developers can go terribly wrong.

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