New Earthworm Jim game won't be new
It was a move that excited gamers, but Sega's decision to release Earthworm Jim games via the three download services across the consoles has turned sour, with a licensing issue poisoning Sega's hopes of making a new Earthworm Jim game.
A licensing issue with Interplay has suggested that if a new Jim game was made, it would prevent the addition of the XBLA's edition of the original Earthworm Jim, which is already available on the Virtual Console. 'The Feed' of G4TV reports this is because the next game is in fact a remake, and not it's own original game.
There's no confirmation of exactly which Earthworm Jim game is being remade to suit the Playstation Network, but many are hoping that it's not Earthworm Jim 4, which has already been promised to gamers by Interplay - if this is the case, then the PSN has a chance at showcasing more of the series in the future. Even if this means no original game, I'm sure old school gamers will be happy.

Source: http://www.joystiq.com/2009/08/19/new-earthworm-jim-less-new-than-expected-its-a-remake/