SANTA MONICA, Calif., Jan. 31 /PRNewswire/ -- In an exciting move, id Software has licensed the rights to develop a sequel to their legendary first-person shooter, Wolfenstein 3-D®, to Activision, Inc. (Nasdaq: ATVI - news). The new title, Return to Castle Wolfenstein(TM), will be developed by Gray Matter Interactive Studios, a newly formed game developer founded by the top designers formerly from Xatrix Entertainment, the developer of such popular games as Redneck Rampage and Kingpin. Return to Castle Wolfenstein will be published by Activision with id Software overseeing development of the game.

Like the original id game, players assume the role of William J. ``B.J.'' Blazkowicz, the Allies' bad boy of WWII espionage. The fate of the free world hangs in the balance as B.J. battles against the sadistic machinations of a Nazi war machine bent on world domination. This latest sequel will reflect the same over-the-top comic book style of the original Wolfenstein 3D. However, by using the unparalleled graphics technology of the QUAKE III Arena(TM) engine and a new scripting system, Return to Castle Wolfenstein will pull the player further into a chilling storyline filled with frightening tales of bio-engineering and the occult. Devotees of multiplayer action will be able to jump online and frag-it-out within the unique Wolfenstein world.
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Quick Translation: Gray Matter Interactive Studios, who used to be Xatrix, the guys who made Kingpin, are using the the Quake3 Engine to make Return to Castle Wolfenstein. Nifty eh? 10:30am update by Steve: As a few people pointed out, this project was 'sort-of' confirmed in December of last year according to this news item, as well as earlier, November 1st even. This is the official PR from Activision now though.