Twisted Pixel won’t be pursuing legal action against Capcom, despite calling copycat iPhone game MaXplosion, “complete theft.”

"While I think the similarities are pretty nauseating,” CEO Michael Wilford told Joystiq, “we're too small to take on a company like Capcom. That, and we owe them one for inventing Mega Man, so we'll let them slide."

Capcom’s iOS game MaXplosion bears remarkable similarities to Twisted Pixel’s ‘Splosion Man, as both feature frenetic red heroes blowing themselves up to leap around a laboratory. Developers at the Texas studio yesterday took to Twitter to criticise Capcom’s clone.

But legal action is off the agenda. "In general, anything that would take our focus off of making games would be a bad decision, I think. We just need to keep our heads down making the next thing so that Capcom has something to steal next year,” Wilford quipped.

And it seems that yesterday’s tweet, that said “guess we're just gonna have to make a better iPhone game than them,” was sincere.

"We'll just have to make our own mobile game and I'm hopeful that Capcom will see that robbing our shit wasn't worth it in the long run,” Wilford told Joystiq. “We'll let you know when we have something on the mobile front to talk about, but now we have added incentive!"