XSEED Games has announced they will be releasing the Marvelous Entertainment and K2-Developed PSP title Valhalla Knights for the PSP in the first quarter of 2007. Valhalla Knights takes place in a land where humans and demi-humans lived in peace in a paradise, until the Dark Lord, the previous ruler of the land, returned with his army of demons. After years of combat, he was sealed away by a hero, Rastul. However, the land that was once paradise was now a barrens known as the Cursed Land. A youth awakes one day in the Cursed Land, and must search for his lost identity... and the future of the Cursed Land.

Players are able to select their characters from one of five races - human, elf, dwarf, halfling, and machine - and one of eight classes - fighter, mage, thief, priest, knight, samurai, ninja, and anchor - something that's relatively uncommon in Japanese-developed RPGs. The game features a strategy-action hybrid system, which allows players complete controls over their actions, as well as allowing players to avoid battles on the overworld. Additionally, Valhalla Knights will feature two types of multiplayer: a co-op mode with thirty unique missions for two players, and a deathmatch mode for two.

Valhalla Knights was released in Japan on August 31, and XSEED will release this PSP title sometime in the first quarter of 2007. We'll be updating this post a little later today with our first screenshots of this title, so keep watch to this post!