Announced last October, N3: Ninety-Nine Nights II is currently 50 percent done and coming to the Xbox 360 sometime this year.
The game system, the graphics, the production, the action and pretty much every thing has been polished up since the previous title. (What does that say about the first game?!)
Ninety-Nine Nights, the first game, was designed by Rez creator Tetsuya Mizuguchi, who apparently isn't that involved in this title, and production was largely handled by Korean dev Phantagram.
This time Microsoft development arm Feelplus will be handling development duties.