Silicon Knights and Digital Extreme have confirmed that they are in the process of working on a new title each for the PlayStation 3, PC and Xbox 360, which are scheduled to hit the shops within the next two years.
News comes as both companies received a funding of USD 1 million from the Ontario Media Development Corporation, which aims to bolster the local development community.
According to reports, Digital Extremes is currently working on a "a third-person action game with an old school horror theme,” while Silicon Knights, previously a stable mate of Nintendo, aims to release a "a third-person action/psychological thriller."
At first glance, the latter certainly fits the bill of a possible sequel to the 2002 GameCube title, Eternal Darkness, although nothing has been confirmed at this stage.
Silicon Knights President, Denis Dyack, commented: “We hope that this new program will flourish and help expand the Ontario video game industry.”
Stay tuned for more information as we get it.

PS3 needs a good horror game, more games, more variety is good news
hmmm interesting, i dont know much about digital extreme but silicon knights jowever are pretty good when it comes too developing games. They handled the MGS gamecube revamp particularly well and Too Human is looking very good also, even though it is on a ghastly system. lol.
are dev's still making games over than fps???? thankgod!, lol!
Hmm, no real solid info aside from they're working on stuff.
Please not a sequel to Eternal Darkness!!!! That game just flate out sucked...!!!!!
wernt silicon knights the makers of the original Blood Omen, maybe a new one is in the works. crossed fingers
Sounds like a good game can come out of this
Bring next-gen versions of Legacy of Kain or Soul Reaver