The site XBLA Fans, citing "an extremely trusted source," says Alan Wake: Night Springs will be an Xbox Live Arcade release and not a retail release. XBLA Fans says it has seen screen captures of the game.
This is not entirely unforeseen; earlier this month, Wake studio Remedy told Eurogamer that another installment in the narrative thriller was coming soon. "But to be absolutely certain to avoid confusion, this next Wake instalment will not be Alan Wake 2. And neither will it be DLC," said Remedy's Oskari Hakkinen.
"Night Springs" is the name of a television program within the Alan Wake continuity. It's viewable on any of the working TV sets within the main game.
Kotaku has reached out to a Microsoft representative for comment. Any that is given will be updated here.