The two technical parted ways when Team Ninja Head Tomonobu Itagaki left two years ago, however since then, Itagaki and Tecmo have been tussling in court; Itagaki claims that Tecmo owns him $1.4 million in unpaid bonuses. But, the courts won’t be settling this agreement. Because Tecmo and Itagaki have finally reached to an agreement.

“I thank you from the bottom of my heart for your great help and words of encouragement which have been extended to me so far. I can’t hardly wait for the day of announcing my newest work in progress to you all, but I promise you now that I will deliver to you an enjoyable game with depth that surpasses all the games I created before, and is worthy of being world-class entertainment,” said Itagaki in a statement given to 1UP.

This settlement marks the end of a long and successful partnership, but as you can tell from Itagaki’s statements, he’s planning to announce new title under his new development studio, Tokyo Vikings. Meanwhile, Tecmo and Team Ninja have revealed on series’ established by Itagaki, including Ninja Gaiden and the upcoming Dead or Alive title.

Despite trying to keep the bag closed, the cat been roaming around for a while now, and even if it was revealed in a recent issue of Famitsu. The game hasn’t been officially announced yet by Tecmo, that was until GDC.

When standing in front of a area filled with game journalists, director Yosuke Hayashi officially announced that Tecmo is busy working on the PS3 version of Ninja Gaiden II, Ninja Gaiden Sigma 2.

Sigma 2 will feature online co-op play, with Ryu being able to team up with either of his female companions - Ayane from Dead or Alive, and Momiji from Ninja Gaiden Dragon Sword. However, Hayashi explained that online play would not feature player-versus-player combat.

He also revealed that all the extra content in Sigma wouldn’t be made available for the 360, but he admitted that Team Ninja was also considereng downloadable content for the game on the PS3.

[Tecmo announces Ninja Gaiden Sigma 2 for PS3 (officially) via ArsTechnica]

Well, no one saw this one coming. According to Kotaku, at 1pm Japan Time today, Square Enix will be outlining its plans for a friendly takeover Tecmo, which is having some trouble at this time. The Square Enix takeover should help the company gain a stronger foothold in the U.S. market with popular Tecmo titles like the Ninja Gaiden and Dead or Alive. This can also help Square Enix with their heavily dependent on RPGs.

This isn’t the first time Square Enix has moved in on a beleaguered company. In August 2005, Square Enix acquired Taito and wholly owned the company as a subsidiary by September 2005.