Nights into Dreams.
Sega has confirmed their suspicious and have announced Nights into Dreams HD, which will be hitting PC, Xbox Live Arcade and PlayStation Network this Fall 2012.
According to Sega, the remake will "bring Nightopia to vivid life with improved HD graphics and a 16:9 aspect ratio, as well as added support for leaderboards, trophies, and achievements."
The game will also take a page from the Halo: Combat Evolved Anniversary Edition with a feature to switch to "an optional Saturn Mode that will let players experience the game with the original graphics intact."
Sega also released a trailer showing off the game. Check it out in the video below.