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ClaudeLv250 said:
Hey, we called it.

The Kingdom Hearts spinoff, I thought was for handhelds, which makes me wonder if this is indeed the spinoff or possibly KH3...

The actual quote about Kingdom Hearts being on handhelds is:

"It is not Kingdom Hearts III, but it is an anecdote... I want to explain what Mickey did in the World of Darkness, and also how he got his keyblade... I want to make this [new project] slightly different from the Kingdom Hearts' series, and change the system a little... The multi-developing makes me want to put it on something else... If we follow this idea, it would be hard to choose if to make the game for the "PSP", "NDS" or the cell phone."

So it seemed probable that it would be made on handhelds, but not certain.  I'm almost positive this isn't Kingdom Hearts 3 though, because they were very clear that Kingdom Hearts 3 development would not begin until Final Fantasy Versus XIII was completed, which won't be until the end of 2008 (in Japan).  Meaning the game wouldn't even be shown until E3 2009 at the earliest.