It's called Sonic and the Black Knite, supposable sequal to Sonic and the Secret Rings for the Wii.
http://www.neogaf.com/forum/showthread.php?t=327896

Scroll down to see Sonic holdin a huge sword on the FRONT coverpage of Nintendo Power. Yet again, Sonics made it to the FRONT page.

I heard Knuckles and Shadow will be in. I'll laugh if Shadow's Lancelot.
And it is sorta a sequel to SatSR. Except, it won't have Shara or anything. Sonic just goes into another book. (Poor Sonic... ) You control him with a Nunchuck with the control stick, and then you slash them by flicking the Wii Remote. There's a talking sword, too. (First a ring genie, now a talking sword. I love Sonic, but really. A TALKING, SWORD!? ) Some characters will take over the rolls of other people, like how Tails took the role of Ali Baba in SatSR. I think Sega will finally stop being so critizized so hard!

ive never critisized sega, and i never will. theres not a sonic game that i dont like. im excited to see another one come out again. i heard before sonic adventure rush came out they were going to end sonic. but sonic said HELL no

Not a game I don't like either! Keeping the spirit ALIVE!
I hear about lots of games before they come out, and I gotta say. Sega's really throwing these awesome games out!

yeah and theyve got better with the graphics for 360, but this ones for the wii so itll have SATSR graphics which were pretty good