It looks like SEGA is giving yet another one of their franchises a next-gen sequel. A few days ago they announced Virtua Tennis 3, today SEGA Rally is announced for Xbox 360, PC and Playstation 3. No word of a Wii version.

Apparently they are taking some sort of MotorStorm-like approach to terrain-deforming:

Set to redefine the rally genre with vibrant next generation graphics, intuitive controls, competitive bumper-to-bumper racing and fully reactive environments. SEGA Rally will once again be leading the rest of the pack with a wonderfully vivacious and realistic graphical world that is every gamers driving fantasy.

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SEGA Rally offers a vast variety of fully deformable environments and surfaces, from littered gravel tracks, all weather tarmac roads, to snow driven trails - no two laps let alone a race will ever be the same!

And something that I find a bit more interesting; they promised to keep it ‘entertaining’ (read: arcade) instead of making it into an uber-realistic racing-simulator.

“The rally genre has become the domain of ultra realistic simulation based titles that portray the sport in minute detail but offer little in terms of fun,” commented Guy Wilday, Studio Director, SEGA Driving Studio . “With the emphasis being on entertainment, SEGA Rally will focus on delivering an adrenaline fuelled competitive racing experience but without over-complicating the rally experience.”

SEGA Rally is set for a release in 2007 for Xbox 360, PC and Playstation 3.