Set in 1972, well before the “modern day” sections of the com...graphic novel, The End is Nigh focuses on the teaming of Rorschach and Nite Owl. The story begins as the duo assists the police in handling a prison breakout orchestrated by the Underboss, a villain they had put behind bars years earlier. In the process, though, they find themselves on the other side of the law and at odds with some grander conspiracy. Much of the story will be told using a “motion comics” style of animation, creating a look that is reminiscent of artist David Gibbons' original artwork, but with some simple movement added to make it a bit more dynamic. The prequel idea certainly seems like a more interesting angle than just cooking up a game that retells the Watchmen story, though I imagine that's exactly the kind of thing that would send Alan Moore into one of his trademark fits.
Mechanically, The End is Nigh is looking like a third-person beat-'em-up with a few twists. You can play as either Rorschach or Nite Owl, though the character that you don't choose to play as will still be present as an AI companion when you're playing solo. The game will offer a two-player mode, though it won't have online support, and will rely on splitscreen. I suppose that's preferable to struggling with the limitations of a shared camera angle, though it still seems less then ideal. Each character will handle a little differently, with Rorschach's brutal, undisciplined style being more effective with groups of enemies, while Nite Owl is more of a mano-a-mano type of fighter. Other unique characteristics will include Rorschach's ability to pick up enemy weapons like baseball bats, Nite Owl's electric charge attack that stuns nearby enemies, and his ability to pick locks, which was compared to the lock-pick mechanic in The Elder Scrolls IV: Oblivion. It was stressed during the demo that this won't be a button-masher, and that enemies will block your attacks if you don't utilize the game's combo system, which unlocks new moves over time.
I feel like this is a case where the license is really going to work against the game itself. There's nothing wrong with a little beat-'em-up action, but it doesn't seem like the type of game that lends itself to exploring the vivid characterizations and murky morality that made Watchmen so great. You can expect to see Watchmen: The End is Nigh on the PlayStation Network, Xbox Live Arcade, and PC around the same time as the Watchmen theatrical release.
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