It follows on from Sonic and the Secrtet Rings as the second part of the Wii exclusive storybook series, and is being developed by Sonic Team in Japan. Transporting Sonic back to an Arthurian medieval world, it arms Sonic with a sword to tackle his foes. It's currently scheduled for release in Spring 2009,
http://uk.wii.ign.com/articles/892/892291p1.html

I'm both intrigued and laughing at the idea of sonic with a sword :lol::lol::shock::shock::lol::lol: