Game has just begun development at Team Ninja.

Dead or Alive Xtreme 3 is in development at Team Ninja, the studio announced during today’s Dead or Alive Festival.

According to Team Ninja’s Yosuke Hayashi, development has just begun and more information will be shared later on. While Hayashi didn’t mention the game by name, he said it’s “a game where Dead or Alive characters go to a southern beach on vacation.”

The latest entry in the summer beach activities series, Dead or Alive Xtreme 2, launched for Xbox 360 in November 2006.

Thanks, Games Talk.

Update 1:05 p.m.: The official Dead or Alive Facebook page posted the following update after the event:

Thanks for attending and for watching DOA Festival today. MC Kwiggle (USA-Christie) won the exhibition match and Teru Rock (輝Rock Japan-Leifang) fought intensely with him. We announced DOAX3 (Working Title) today, but it will be made exclusively for Japan and Asian market. We announced many things today about new stage, patch update, Halloween costumes etc… We will keep you posted

By the sound of it, Koei Tecmo does not yet have plans to localize Dead or Alive Xtreme 3. Hopefully that will change in the future.