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Godot said:
WKC isn't first party. Last I heard, Level 5 was still independant. It's just that Sony own the IP and funded the project like MS did with IU.

 

It's not quite the same as IU.  IU was published by SE, and I'm pretty sure Microsoft no longer owns the IP.

WKC, much like every other game Level 5 has worked on with Sony, it is both paid for and published by Sony, and hey do own the IP.  It could be labeled as second party, and it falls into the strategy that Squilliam was discussing in the OP.

They've also said it will be a franchise.

They I hope they make the new Dark Cloud that Hino keeps talking about before WKC2.