Tried to put the quotes in quotes, but I only made a mess of things, kept bleeding into everything.
Project Needle Mouse
http://blogs.sega.com/usa/category/project-needlemouse/To hear a few seconds of music from the game click this link.
http://www.sega.com/ you might be confused, but it is the music that sounds like it was made on a 16 bit system.
The final name is set to be announced tomorrow on the 4th. Sega blogs claims it must be announced on that day, along with registered websites fans have come to the conclusion that his game will be titled
Sonic the Hedgehog 4. Mighty big shoes to fill.
" In Project Needlemouse, there will be no new characters – playable or otherwise. The focus will remain solely on one blue hedgehog. If you’re now the most overjoyed person in the world, or even if you’re still curious about more, let us know in the comments below!"
My opinion? Tails and Knuckles will be unlockable/downloadable content.

Shell Cracker from Sonic 2.
"This art reveals an enemy from the game – but at the same time, it also reveals much more about the spirit, and direction, that Project Needlemouse is taking."
"Speed is something that is not given; but rather earned through dedication. Speed is not found by simply pushing a boost button, but by building momentum. It is the reward for skill in the face of difficult challenges – this kind of speed is the most exhilarating, not only because it is fast, but because of the pure perfection such speed exemplifies. This is the truth of the original Sonic games – and this is the truth of Project Needlemouse. "
^ That right there says it all! ^ "When you’re making a 2D Sonic game, there are some things you’ll almost always need if you want to recapture the feeling of the classics. While momentum based gameplay is a heavy piece of that, the levels themselves also have to exude a style that matches or improves upon what came before them. Often, it is not about attempting to revolutionize, but rather to stay true to the formulas for Sonic’s success that already exist.
The zones themselves – and their environments – do more to immerse players into the world than we might notice at first. Today, we’d like to present two pieces of such concept art, which we hope bring smiles to your faces. Let’s start with a classic:"
"While we know that these two pieces of concept art may literally only be a sunflower and a palm tree, and aren’t exactly the most action-packed pictures you’ve seen this year, they express a spirit of the game that we feel is even more important. From Badniks to Zones, there are some things that mean a lot simply because they exist within a game."
"Oh, and as another bonus, let’s go ahead and dispel away a little rumor that we’ve noticed in the comments:Project Needlemouse is not an HD version of Sonic 1. These may be old badniks, but when we said all-new adventure, we meant it." Interview With Gamespot - This will be a Wiiware downloadable game!
http://www.gamespot.com/wii/action/sonicthehedgehog4episode1/news.html?sid=6249445&tag=topslot;title;1&mode=previews GameSpot: Why did you choose to go with a title like Sonic 4? Does this mean this is a direct sequel to the Genesis games?
Ken Balough: I think one aspect to keep in mind is this game is truly a labor of love. A lot of us grew up on the Sega Genesis console; in fact, I remember vividly the first day I got mine with Revenge of Shinobi and Moonwalker. Ever since Sonic & Knuckles, Sonic the Hedgehog 4 has been a game classic Sega fans have always wanted to see. It was the right people, at the right time, getting together and finally making this game we've all wanted to see.
While the game is a brand-new adventure, it will definitely pick up after Sonic & Knuckles. However, what you are looking at is the beginning of a new story arc.
GS: The subtitle is Episode 1. Does this mean it's episodic content?
KB: As mentioned, I think the best way to view it is as a first part in a much larger adventure. When Sega released Sonic 3, ultimately it was the part 1 of a story that saw its conclusion in Sonic & Knuckles. In that same spirit, Sonic the Hedgehog 4 is a bigger story, and this is that first chapter. I think it's also safe to say that by the end of the episode one, fans will be very excited to see what's in store for episode two!
GS: Why did you decide to make this a downloadable title?
KB: In recent years, we've seen a huge surge of classic game properties making a return in this arena. [Downloadable] games offer players a chance to play terrific games without breaking the bank. It's also a promise to Sonic fans. We're going to deliver a Genesis-era Sonic game as if it were created today that goes to the core of what classic Sonic fans desire. This means [the fan] gets to judge us on our work each step of the way, and we plan on delivering that goal in a big way.
GS: In terms of graphics, the game appears to use 3D graphics. Why take that route instead of an HD makeover or a more traditional approach like Capcom's recent Mega Man games?
KB: One of our goals was to make a gorgeous-looking 2D Sonic game. This approach allows fans new and old to see what a 2D Genesis-style game would look like today with modern graphics.
GS: As far as gameplay goes, should we expect classic old-school Sonic 2D mechanics or something new added into the mix?
KB: All the Sonic favorites [are] here for sure! Spin dash, power sneakers, etc. But you will also see the homing attack added, and in true Sonic fashion, you can compete with your friends for the fastest level times through leaderboards.
GS: What can we expect from the music? Will it sound like the old Sonic games?
KB: It will sound like an evolution from the original series. Expect to hear very familiar tempos and styles of music that resonates with 16-bit games but also has a modern appeal.
GS: Will there be any differences between the different versions? That is, will the Wii have motion control, or will the PS3 and 360 run at 1080p?
KB: For all intents and purposes, the games are designed to be identical. There are a few differences per what each console can output visually: Wii will be at 480p, while the XBLA and PSN versions will run at 1080p. However, for certain areas of the game, the Wii will be able to use motion control, and the PS3 will be able to use the Sixaxis.
GS: Is this where the Sonic franchise is moving, or can we still expect to see console and portable titles?
KB: Sonic as a brand is definitely not moving away from our packaged console versions. Making Sonic the Hedgehog 4 Episode I for download is just a new way to offer a great Sonic experience through a different medium.
GS: Thanks for your time, Ken.