Looks like the new Alan Wake game is going to be a Live Arcade title. One screenshot at Game Informer. Details at Spike TV game awards on December 10th. I would like to point out that he's holding a flashlight and a power drill. Not the most versatile weapon, but gets the job done. Seems more of a gore horror type weapon, than something for fighting the enemies in the first game.
http://www.gameinformer.com/b/news/archive/2011/11/07/first-look-at-the-next-alan-wake.aspx
http://www.gameinformer.com/b/news/archive/2011/11/07/first-look-at-the-next-alan-wake.aspx