
According to the latest Famitsu issue (via NeoGAF), Ni-Oh has apparently been transformed from an action game into an action-RPG. Moreover, it also appears that Team Ninja is working on the action portions of the Playstation 3 game.
In 2004, Ni-Oh was first announced for Playstation 3 under the named of Oni. The video game was supposed to be based around a movie that uses a lost script written by Akira Kurosawa. It features a samurai with blonde hair looking to find his own identity in war-torn Japan during the 16th century.
Unfortunately, the movie was cancelled in September of 2005. Even so, publisher Koei insisted that the game is still in development. After a trailer at Tokyo Game Show, however, Ni-Oh disappeared for a few years. It would eventually resurface in an Famitsu issue from April 2009 in which the magazine revealed that the game is still in development.
It now appears that the development for Ni-Oh has been revamped. No release date has been announced but perhaps we could see the Playstation 3 game present at the Tokyo Game Show.

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