Yesterday, TSSZ reported that Sonic Team wasn't just considering making a new "Nights", they were actually making it! Here's what an interview in the UK ODCM said:

"You know linear sensors? Well, we made this system where you could remobe the cable from the original pad and control NiGHTS like this." Naka proceeded to loop and twist a rolled up magazine in the air in front of him. After this, he continued talking. "It was called Air NiGHTS. We made it on Dreamcast for a while as well, but we stopped."

So why did Sonic Team decide to stop production of the game? "I know a lot of people love it and want us to make a sequel, but for us it's a really important game. Like the way Spielberg likes ET so much he won't remake it, I don't want to make another NiGHTS."

So there you have it....while it may seem unfortunate, Naka makes a good point.

SOURCE: TSSZ