Former Capcom development head Keiji Inafune still has some real game left in him! Following a few social game announcements and some still baffling collaborations with Compile Heart, Inafune is working on an honest-to-goodness 3DS title called "Kai-oh."
Kai-oh is an action RPG with multiplayer support. The kanji for the name translates to "Sea King." The game does have a pirate theme, but you apparently play as a penguin. A release is planned for 2012
The game is being developed as a collaboration between Inafune's new Intercept studio and Marvelous AQL, the newly formed merged company comprised of Marvelous Entertainment, AQ Interactive and Liveware.
The announcement of Kai-oh came at a press conference that Marvelous AQL is currently holding to commemorate its merger. We'll hopefully get additional details shortly.