Activision has finally announced Return to Castle Wolfenstein, the Quake III Arena engine sequel to id Software's original Wolfenstein 3D (thanks KungFu). The game is in development by Gray Matter Interactive Studios, "a newly formed game developer founded by the top designers formerly from Xatrix Entertainment" according to the press release, and along with the game's announcement Activision has announced that they have acquired 40% of the new company. Here's a description of the game, which should be familiar to fans of the original:

Like the original id game, players assume the role of William J. "B.J." Blazkowicz, the Allies' bad boy of WWII espionage. The fate of the free world hangs in the balance as B.J. battles against the sadistic machinations of a Nazi war machine bent on world domination. This latest sequel will reflect the same over-the-top comic book style of the original Wolfenstein 3D. However, by using the unparalleled graphics technology of the QUAKE III Arena(TM) engine and a new scripting system, Return to Castle Wolfenstein will pull the player further into a chilling storyline filled with frightening tales of bio-engineering and the occult. Devotees of multiplayer action will be able to jump online and frag-it-out within the unique Wolfenstein world.