Slated for release on Xbox Live Arcade and the PlayStation Network is SEGA’s Sonic the Hedgehog 4: Episode 1. Unlike its predecessors, this installment “is rendered in 3D but takes place on a 2D plane, so our guesses at crisp new 2D sprites were clearly off.” Video after the break.

…the “Episode 1” title indicates long-term plans with at least a few downloadable releases already planned.

[via 1UP]