Alan Wake's American Nightmare revealed for the Xbox live Arcade

Remedy Entertainment has officially confirmed that Alan Wake's American Nightmare is currently under development for the Xbox 360.

Set to be released on Xbox Live Arcade sometime in Q1 2012, American Nightmare is a follow up to its predecessor, Alan Wake, but is not its a sequel. It is set to be an independent game and only exists to broaden and expand the Alan Wake universe.

While this may not be Alan Wake 2, Remedy Entertainment have assured that this is not the last Alan Wake game, and that there is a sequel in the works.