Cave Story 3D, as it's called, will bring the series away from sprites and into 3D to take advantage of the new handheld's main selling point. The game will still be in the same side-scrolling perspective, though. Cave Story 3D will be a remake of the original, with a few new areas, secrets and easter eggs.
Development is being handled by Nicalis, the studio responsible for the downloadable WiiWare and DSiWare editions that were released in 2010. Creator Daisuke 'Pixel' Amaya, who released the original on PC as freeware in 2004, is of course involved.
Amaya also teased the possibility of an actual new Cave Story, saying "maybe it's time to start thinking about a sequel. There's a very, very good chance we'll see a sequel."