Apparently the presentation kicked off with a comparison between NiGHTs and the works of famous psychologist Carl Jung, who did extensive work on dream theory. The game will consist of seven dream worlds, each divided into the colorful Nightopia and the darker, sinister realm of Nightmare, in which the game's unique bosses reside. For those worried about an unnatural Wii waggle factor, the game will feature an alternate, analog stick control method for a more traditional experience. An interview with producer Takashi Iizuka can be found here for more information, as well as several first-hand experiences.
And just look at those silly clothes. What was he thinking that morning ...?