From a new Nintendo Power interview with Capcom's Masachika Kawata on development of RE:Revelations:
"It''s going really well. Because the game is huge it's a lot of hard work, but when the weather gets a little warmer, we should be able to show more of it."
"Unlike Mercenaries, which is all about shooting action, Revelations is all about survival horror, the very genre Resident Evil established. We actually think of Revelations as a direct sequel to Resident Evil 5 and it will be full of new, innovative ideas and characters."
"Should the Mercenaries establish itself as a franchise as we hope, we'll be looking into expanding the game through DLC, though of course we'd have to consult Nintendo regarding the specifics."
That is good news if you ask me. I'd rather this be a direct sequel than some kind of short side quest that took place 4 or 5 years before the events of Resident Evil 5 on a boat that no one cares about....lol