I took a pretty long look at KOFXII during this year's Tokyo Game Show and it looks kind of amazing. The redrawn sprites look great while still maintaining the basic style that the series has maintained for years. There are also some cool little graphical effects, like the way shadows can cast onto half of your character if you're standing on certain parts of a stage.
That graphical overhaul is the key piece of info in Ignition's announcement, as things like a firm release date, a feature set, or even a list of which platforms it will come to aren't currently available. 360/PS3 seems likely, given the resolution and clarity of the original game's artwork.
In other North American KOF news, Ignition is also scheduled to release a version of The King of Fighters '98 Ultimate Match on the PlayStation 2 on January 20. Heavy D! fans raise up!