Thanks to Kotaku for the heads up about Evil Dead Regeneration, which was just announced by THQ (developed by Cranky Pants Games) and has an official site here: www.evildeadregeneration.com. From the site:

Evil Dead Regeneration follows Ash, the lone survivor of a camp discovering the Necronomicon – the wholly evil book of the dead. Thought to have murdered his companions, Ash is arrested, convicted of the crime, and sentenced to Sunny Meadows, an institute for the criminally insane, but not for long. Ash’s peaceful stay is about to end – thanks to the perverted experiments of his very own psychiatrist, Dr. Reinhard. Hell-bent on using science to harness the Necronomicon’s powers, the mad doctor unleashes the book’s all-powerful Evil on the world – releasing a new slew of Deadites, monsters and spirits, twisting reality into a hellish strudel and leaving mankind with that not-so-fresh apocalyptic feeling. “It’s our goal to create the spiritual successor of Evil Dead 2, one of the seminal action films ever, in pop-culture,” said David Bollesen, general manager, Cranky Pants Games. “Having Bruce Campbell on board, providing creative direction and embracing new ideas we’ve injected into their universe is critical, and their enthusiasm continues to drive us to deliver the ultimate Evil Dead experience.”

Kotaku also gave me the heads up that Possession has been confirmed for PS3, Xbox360, and PC in 2007. New screens are available here.