Couple that with some of their PhysX demonstration videos, and it looks like they're probably working on a sequel to High Road to Revenge. Although the Xbox title didn't sell too well, we had tons of fun playing both the single-player and online multiplayer versions of this. The whole alternate history of the United States and the swashbuckling attitude made it fun, and those flying physics were pretty darn cool, even way back then in, er ... 2003.
[Update: Appended a more explicit headline!]
[Via Xbox 360 Fanboy]