Power of Illusion is being put together by DreamRift, the studio behind 2011's Monster Tale for the Nintendo DS. The game, which is its own side-scrolling, platforming title (instead of a mere port of The Power of Two), is a follow-up to Epic Mickey, but more interestingly, it's also a follow-up to Castle of Illusion Starring Mickey Mouse, a 1990 game for the Sega Genesis!
Power of Illusion will make heavy use of the Nintendo 3DS's stylus. By tapping the item icons exist in every level, you'll be able to "paint" (trace) those items into existence, including cliffs, cannons, and floating platforms. The more precisely you trace, the better for Mickey. A flawlessly-painted canon will only damage Mickey's enemies, for instance, but if you mess up the painting, the canon will be a danger to everyone in the area.
Sometimes you'll need to erase objects, which is done by spreading thinner. Again, the stylus comes into play here.
The hand-drawn sprites in Power of Illusion are extremely compelling, and, thanks to scrolling parallax backgrounds (a heavily-used graphic technique in the days of 16-bit gaming), reportedly look great in sterescopic 3D. Even better, every level in the game is based on an animated Disney adventure, from "Sleeping Beauty" to "Tangled" and lots in between.
As a final declaration of oldschool love, every character that Mickey saves in Power of Illusion will take up residence in the fortress that Mickey uses as his home base, a confirmed nod to the esteemed Suikoden RPG series. Sometimes you find references in the unlikeliest of places, but that's part of what makes video games fun. Right?
There's no release date set for Power of Illusion (Fall 2012 is a general target), but expect lots more information on this game as the weeks march on like Mouseketeers.