Koei's Ni-Oh is based on an unearthed script from Japanese director Akira Kurosawa (Yojimbo, Seven Samurai, Rashomon ) and has been M.I.A. for a while. Good news, Koei is still hard at work on it.
Ni-Oh traces the journey of a half-Japanese blonde-haired samurai in 16th century Japan. When asked about the game, Koei apologised for the lack of an update about Ni-Oh and said it was working feverishly on the title.
Expect more info about the PS3 game sooner than later. At one time there appears to have been a Ni-Oh movie planned, but that seems to be canceled or on hold.