I don't know how they would change the graphics to more manga looking without making them look less detailed, flat and basically Wind Waker looking. Well okay that is an exaggeration but there was nothing wrong with Ken's Rage 1 graphics. If anything, the characters never looked better in 3-D.
maybe that article was a misinterpretation, because elsewhere I read the story cutscenes will use Manga like scenes similiear to One Piece pirate warriors. That doesn't mean the gameplay graphics would change. Japanese title is Shin Hokuto Musou
(Cue number discrepancy just like Shin Sangoku Musou to Dynasty Warriors if they still use Ken's Rage 2 for overseas title)
Consoles: PlayStation 3, Xbox 360
Release Date: December 2012 (JP)
Known Appearing Characters
Those marked with * have a high chance of being confirmed playable
Juza*
Bat (Adult*) - is made to be not too strong
Rin (Adult*) - have throwing projectiles like Mamiya
Ein*
Falco*
Shachi*
Hyoh*
Kaioh*
Colonel
Devil Rebirth
Known Informations
Emperor & Shura arcs are added
The Raoh arc from first game is also getting more volume, with confirmed visual of Colonel & Devil Rebirth
The reason why they use Shin (Real) instead of 2 (for JP title) is because they're also including parts that were omitted from the first game
Overall story could be ending at vs. Kaioh fight
Systems are being changed to better represent the original setting, including gameplay & growth
Illusion/Dream mode is confirmed back
There will be more online features
Story is said to have
events that use game models in manga-like cutscenes (similar to One Piece)
The game will be more Warriors-like; movements are to be made more light
There will be more character moveset types
Pictures will probably appear tommorrow.
