Meet Pinobee.
About a year ago at this time, there were a million wicked rumors circulating about Sonic Team, ranging from the unlikely (Sonic Team splits into three divisions: the Naka division, the Ohshima division, and the Iizuka division) to the unearthly (Sonic Team breaks up). But as with any rumor, it all stems from a (usually) harmless truth, and the truth in this scenario is that a number of key Sonic Team players left Sega to form their own development house: Artoon. 
Green Gibbon (who originally revealed this) isn't sure at this point exactly which members of the Team defected during the upheaval, but the big word going around is that Naoto Ohshima is among the list of traitors. Actually, it kind of makes sense. Ohshima's style of direction is very mellow and fantasy-based, but the recent Team trend is towards off-the-wall, "wacky-cool" styles ala Samba De Amigo. It's not hard to predict just what we can expect from Artoon...think along the lines of Sonic CD and Ristar, both of which were made by certain members of Sonic Team. 
Artoon's first independent project, Pinobee: Quest of Heart for the Game Boy Advance, ideally reflects the sense of fantasy direction found in the aforementioned titles (as well as NiGHTS). Players control Pinobee, a robotic bee who dreams of becoming real. (The name is actually a play on "Pinocchio.") Apparently, it's an action platformer with luscious hand-painted backgrounds and rendered characters. Pinobee: Quest of Heart is being published in Japan by Hudson. Other titles from Artoon include a couple of cell phone games not really worth mentioning, but if you absolutely must know about them, you can read all the gunky details here (in Japanese, of course).
Source: Neo Green Hill Zone

Microsoft has started the hype machine yet again to plug their upcoming videogame console, the X-box, with a press conference showing off 3rd-Party support for the console in a conference in San Francisco, London and Tokyo. To help kick the announcement off, Microsoft also showed off a demo reel of numerous titles headed towards the console, including a curious platformer that looks an awful lot like a hedgehog we know and love. After seeing the footage, it became obvious that the spikey lookalike was not Sonic, but just to help cut off the rumor mill on UseNet before it even gets started, IGN DC contacted Sega for the official word on the identity of this masked hop-aholic. Heather Hawkins, Manager of Gaming Press Relations for Sega of America stated, "That is not Sonic. Sure looks like him, though. There are no plans whatsoever to release a Sonic title on X-box."
Sonic Team have just added a Neato Smaba Item to their page! A Samba Clock! Which has 2 pictures, a collection of the gang, and A Amigo head with Amigo's Gal :)
SonicUnderground.net pulls off another stop as those who been waiting for a season 2 of Sonic Underground have nothing to fear. A new team by the name of Sonic Underground Project 2000 have taken over and are bringing out TXT episodes of the new season, starting with #41, "Taking the Fall". The new season begins October 1st, and a new episode will be released AS THEY ARE FINISHED WRITTEN. Here's a little teaser:
The Samba De Amigo v.2000 Upgrade has been shown at the JAMMA Show, Including new modes and songs, and surprisingly, THIS NEW MONKEY GIRL! (which I'd bet alot of money for, that shes in because of the Love Love Mode, You Go Amigo!)
The JAMMA Show has begun in Japan! And Sonic Team have brought out a new game! Shakka To Tamborine! The Sequal (Technically) To Samba De Amigo! However, instead of Maracas, we've got Tamborines instead, and a buncha of new characters!