It was announced back in June at E3 and is an action shooter. THQ still has it pegged for 2012, as well as Saints Row 3 and Darksiders 2.
Tomonobu Itagaki formed the new Valhalla Games and the team has said Devil's Third is the only game project they're got in the pipeline. A debut clip aired at E3 and you can watch it below - the game looks action-crammed in third-person - for Xbox 360 and PS3.