Tokitowa, which can be translated to English as "Time and Eternity," is a PS3 RPG that's being published by Namco Bandai Games and developed by Imageepoch and animation studio Satelight. The game is produced by Kay Hirono and Kensuke Tsukanaka, has character designs from Vofan and music from Yuzo Koshiro.
The game is set in Kamuza Kingdom, a nation formed when a prince, known as the Knight King, and a magic wielding princess married. The castle town floats on the water (I'm not sure if this means it's on an island or if it's actually floating on the water like a ship).
You play as that prince whose marriage formed the Kingdom. You're 18 years old, and even though you're married, you still haven't had your first kiss. The prince is meant to be named by the player, although he does have a voice actor, Tsubasa Yonaga.
The princess's name is Toki. Toki is 16 years old and always keeps Drake, her blue colored dragon-like pet, at her side. Toki is voiced by Kana Hanazawa.
The most interesting parts:
One of the big early talking points for the game appears to be its animation system. The game uses hand drawn 2D animation for main characters and enemies during movement throughout the world and in battle. This isn't an approximation of hand drawn artwork using cell shading -- it's actual hand drawn art. Backgrounds and other areas appear to be 3D.
Ryoei Mikage (CEO, Imageepoch)
Mikage said that he created this project plan long ago when he thought that he wanted to show 2D anime as is on a game system. The systems at the time were incapable of pulling this off. To get it to work on the PS3, they had to do many trials.
Development on Tokitowa is currently 45%. In a blurb next to the percentage, a Namco Bandai PR person refers to the game as "the world's first HD animation RPG."
Screenshots and concept art from Famitsu:
Princess Toki and the main character, the prince:
Official site: http://tokitowa.channel.or.jp/
It's impossible to tell if the game's going to look any good without seeing it in motion, but it certainly has the potential to be something extraordinary. I'm really looking forward to seeing some videos!