The first release out of Steel Penny, which was formed early last year by ex-Naughty Dog tools engineer Jason Hughes and background artist Andrew Gilmour, is a puzzle game starring the cat-dog duo Bruiser and Scratch (pictured above). It is slated to arrive on WiiWare in mid-2008.

Said to launch in early 2008, WiiWare marks Nintendo's latest addition to the online Wii Shop Channel. Unlike the Virtual Console portion, which sells straight ports of old games, WiiWare will focus on original titles.

Thus far, Virtual Console sales have brought in almost $32 million, and many are hoping for a repeat of that success with WiiWare. Advocates of digital distribution argue that such a model--recently introduced in the realm of consoles via Xbox Live Arcade, WiiWare, and PlayStation Network--allows for more creativity, lower project costs, shorter development time and higher returns.