Canadian developers and are both plotting new games for the 360, and - with the prototyped titles set to commence full in the next year or two.

Both firms received one-million Canadian Dollars from the Ontario Media Development Corporation.

Digital Extremes are plotting "a third-person game with an old school horror theme," while a "a third-person action/psychological thriller" is underway at Silicon Knights.

Fans are of course hoping that the latter emerges as Eternal Darkness 2.

Silicon Knights project should be ready in 2010; the developer presently locked in a tussle with over the Unreal Engine and delays to Too Human.

"We hope that this new program will flourish and help expand the Ontario video game industry," beamed Denis Dyack.

By Luke Guttridge