On June 2, 2008, just before the release of "Ninja Gaiden II" for the Xbox 360, Itagaki announced that he was resigning from Tecmo and was suing the company for withholding a bonus promised for his previous works. He was also suing Tecmo's president Yoshimi Yasuda for damages based on "unreasonable and statements" made in front of Itagaki's colleagues. In an interview with 1up.com, Itagaki has revealed that he is working on a project with former members of Team Ninja under a new studio, Valhalla Game Studios. The title in question, "Devil's Third", was revealed shortly before E3 2010.