from cube.ign.com:

Ghouls 'N Ghosts Online
A classic game gets a major boost thanks to Terazona.



March 03, 2003 - This just in: The online revolution has arrived. Sure, thousands of gamers have flocked to the online services available for all three next-gen consoles, but no one was sure "online" had truly arrived. The proof came with Capcom's announcement of a Ghouls 'N Ghosts Massively Multiplayer Online Game, in development for all three consoles. A major company putting a retro game online for all three platforms in a sign that the online console age has truly arrived.
Though online play is expected for all three platforms, it does not mean you can hop on your GameCube and play against your buddy on your PS2, so keep dreaming.

Developer Game Factory will use the Terazona Network Engine to allow gamers to play together online. No details on gameplay or the online interface were announced. However, many important folks were jabbering about the announcement.

"We are very proud to be associated with one of the classic game series of all time," states Monte Singman, CEO of Zona, Inc. "Ghouls 'N Ghosts was technically and visually ahead of its time when released by Capcom in 1988. Very soon thousands of concurrent online game players will enjoy the same kind of fun video game entertainment within a fast, seamless, and reliable game play environment."

Charlotte Chiang, President of Game Factory, had this to say: "Terazona is simply the most complete solution on the market today. With Terazona, Game Factory will be able to focus on what we do the best -- make games, and we can shorten our time-to-market, and reduce the development cost and risk. Terazona is the best choice for us."

Not to be outdone, Yoshiki Okamoto, Chief Operating Officer Senior managing Director Production Studios Capcom, said: "As a member of Capcom, I am really pleased and excited to hear that the talented creators of Game Factory are going to work on MMOG based on our Ghouls 'N Ghosts. I am looking forward to playing the MMOG version of Ghouls 'N Ghosts by Game Factory. Bet it's gonna be a legend!"

We'll have more on Ghouls 'N Ghosts new online incarnation as soon as it becomes available. We promise.

This is awesome news!! I wonder if it will mirror Maximo in terms of looks and gameplay.

Read that earlier today - very cool indeed.

Love the news, hate the reporting.... IGN.... oh god, online gaming is finally HERE!!! Because of one game.... wait, nevermind the fact that Microsoft invested millions in the Live! infrastructure, etc etc etc.

Sooooo, how would this game work as a MMOG? I'm pretty sure I remember this game as ridiculously challenging side-scrolling game. Will it allow for teams to go through levels and stuff like that?
What's this Terazona Network Engine? Is it compatible with Live?

It'll have to be live, it's either Live or it isn't online for XBox.

Sounds interesting.

Saw a game called Ghost Master or something at E3 last year - looked like the Sims with ghosts and it reminded me of an old Genesis game I think. You get to haunt people in a house and such - really cool. Guess this game isn't it.

Of all the games I wouldn't expect to be online, much less in MMORPG format. I'm pretty curious as to what this is going to actually be.

Damnit Capcom, I want real Street Fighter games online!

Ahhh, but it doesn't call it a massive online RPG, just a game. So I'm assuming this is something different.

Why does everybody automatically assume that an online game is going to be a MMORPG? I'm waiting for the RPG version of Madden 2004!

I'm curious how this game will work online.

I hope when they release this game that you actually have to play through it twice to actually beat it, with the second playthrough being harder than the first.

I'm curious how Capcom, who couldn't handle a very simple 2 player game online, plans to handle a massive multiplayer game.. the mind boggles.

Couldn't agree more!

i heard about this a few weeks ago from the gamefaq.com forum.

You're a brave man venturing out there..

*looks at your sig* Hmm..

More Info:
http://xbox.ign.com/articles/388/388376p1.html

One of my dreams for online gaming is co-op Contra with voice communication. This sounds like it might be up that alley, in which case

Isn't this the official Hardest Game of All Time? (also one of the best?)