Sony Online Entertainment has formally announced plans to develop a new MMO based on the 2004 smash hit film, Kung Fu Hustle, through their SOGA studio.

Unfortunately, the game will targeted specifically at the Chinese audience and there is no hint of a global release at this point.

The game will be an all out fighter with a branching storyline and up to eight player support in PvP versus mode. The good news for Chinese player is that it'll be free to play in its most basic form as the game will follow the 'micro-transaction' model, allowing players to buy extra lives and items at a 'nominal fee'.

It's a little annoying for non-Chinese gamers. Stephen Chow's action-comedy was received just as well in the west as in the east and the the films director has worked closely with the developer.

"Working with Stephen Chow has been a fantastic experience," says John Laurence, General Manager of SOGA. "His sense of humour, directing and martial arts expertise has been an enormous asset for us; he's an avid video game player, with a strong sense of game design."

Hopefully the game will see a global release eventually and will successfully translate the dramatic, over-the-top fight scenes of the film to a new medium.

We'll admit that it seems odd to us though; releasing an online game in China given the recent tightening of game laws there. It also seems there's a trend right now for creating games of three year old movies, or re-releasing three year old games on new platforms.

Worried the market is being saturated with MMOs recently, or are you hopeful about how this movie-tie in may turn out? Let us know in the usual place.