It seems that game Suda-51 has been working on for a while is now known as Kurayami.
It appears to be an action adventure game and exclusive to the PS3, according to GameSpy, who has the first details of it on it’s product page:
“The eccentric Suda 51 harnesses the power of PS3 for a bizarre action/adventure inspired the work of existentialist writer Franz Kafka. In an unusual town full of odd locals, your stranded characters must explore the town and its castle to find a way out, using only his carried torch to light his way and to fend off the unexpected and unexplainable horrors that await.
Advanced new lighting and graphic techniques are used to impress upon you the feeling of fear and loneliness (the title “Kurayami” means “Darkness” in Japanese) as you venture through to the end of your quest.”
And thats all she wrote. First concept art over at Gamekyo.