Back in March 06, Famitsu noted that "A Game creator who recently went solo is developing a [Wii] action game featuring an evil-spirit that looks like a pierrot clown flying through the air.”, which doesn't exactly leave a heck of a lot suspects. The NiGHTS appears to have been further confirmed by SPOnG, who noted this:
Many would agree that NiGHTS was a fantastic game that defined the Saturn, and many more will say they'd seen it around but never played it because they never had access to a console it ran on. We wouldn't be surprised if we see the NiGHTS Into Dreams pop up on the Virtual Console, too. I know one guy who's jumping up and down right now -- Racketboy called Nights the #1 game franchise that needs a sequel.
Interestingly enough, SEGA isn't developing the game. Sonic's not looking so hot lately, so I'm somewhat uncomfortably happy to hear that.
[Via LiveNintendo + Thanks Matt]