http://gonintendo.com/viewstory.php?id=102541

"But with Project Needlemouse, I think that Sega wanted to settle [sic] demands, because there’s a lot a nostalgic gamers out there, and on XBOX Live or PSN…(pause)…you have a lot of hardcore gamers. And the old versions of Sonic games are selling very well on these platforms, so there’s a real market for these kinds of products. [...] The idea really is to finally please all these hardcore gamers, because we love them at Sega."

That makes it sound like they're focusing on downloadable content delivery, whereas before they seemed to indicate it would be a retail title.

This would be a bad move on their part, i think. Especially if that meant leaving out the Wii (though it would be understandable, given WiiWare's tiny little file-size limits)

What is Project Needlemouse?

OT: Xbox Live / PSN makes sense.

Yeah. It's supposed to be "the" Sonic game that gamers have been waiting for, 2D, High Definition, all about speed.

As a Nintendo fanboy and staunch supporter of 3D Sonic, i have my severe doubts, however.

No it doesn't, and you know it too.

Sonic has always sold much, much better on Wii than on 360 and PS3 (often combined even).

If they want it to be a DLC game then yes... Xbox Live and PSN makes sense.

Xbox Live, PSN and WiiWare makes sense, anything else does not.

As Mr Khan said, it likely wouldnt go on Wii Ware due to file size limits.

That'd be bad on Sega's part. If they have any business sense left, they'll release it on WiiWare also.