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Nautilus said:

I asked this because it seems that the game will take place inside that game thing of the trailer, and in the tv we see that the game is in 2D, so maybe this is a smaller project inside the no more heroes universe?But then again, that would kind of make the trailer false advertising, because of it being cinematic and such.

That thing Travis is playing is Hotline Miami, complete with the music of said game when the killer approaches him from behind. It's a nod, not meant to be deceiving or that it will the actual game you're playing.

What you're seeing is what you're getting: Travis Touchdown fighting people with his lightsaber, which is exactly how it goes on the previous No More Heroes. By the way, yes, they're great.