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m0ney said:
What are Sony thinking? this game was nothing but object of mockery.

They where probably thinking the moscot was fine... but "we can do better than this", and decided to give it another go.

To be fair, it does look (from gameplay) alot better than the first Knack.

 

Now most will probably wont care, that its getting a 2nd game... but theres probably a few out there that are actually looking forwards to it.

And as long as they can make back what it cost to develope it seems fine (even if its not going to move any hardware).