Sega have finally revealed what Project Needlemouse truly is and it will be the continuation of the original 2D platform series or a fresh start. Sonic the Hedgehog 4: Episode I is as the name implies the first episode in what will hopefully be a long series of episodes. This is what Sega's Ken Balough had to say:
"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!"
Sonic the Hedgehog 4: Episode I will be released this summer.