There seems to be some confusion tied to Eternal Darkness, so I thought I would register and chime in. Nintendo owns the IP rights to Eternal Darkness along with the patent for the insanity effects. Any work Silicon Knights was doing for the Eternal Darkness demo were for Wii U. Further evidence was given by Dennis himself during an interview back in 2008 he said "a complicated question with a complicated answer" in reference to who owns the IP. Dennis Dyack is a control freak. It's the reason why he left the supervision of Nintendo. It's also the reason why he didn't just come out and say that Silicon Knights does not own the rights, or at the very least only owns a partial right to create a sequel. See not so complicated after all.

I still hold out hope for Eternal Darkness as Nintendo applied for a trademark in 2010. Along with the fact that when Silicon Knights goes bankrupt and dissolves, so do any IP claims that might have had. Nintendo would be able to make a sequel free and clear of the Dennis Dyack plague. Retro Studios is currently working on a secret project that should be revealed soon, hey I can hope right. At the very least it's going to be something new from Retro Studios that is big enough to veil in secrecy.