The gameplay style has been decided to be similar to Zelda, which is the same basic style as Midnight Mutants. So it would be either the 2nd, or the 0th, depending if you call Zelda an RPG.
So it's not gonna be turn based a la Final Fantasy? Thats a shame
I would have loved a nice turn-based JRPG for the 7800. There were too many 8/16-bit Zelda clones anyway, and something like Final Fantasy or Dragon Warrior would be a very new concept on such an arcade port-centric console as this. I need a game I can really sink my teeth into for my 7800, and a JRPG sounds like just what the doctor ordered. Also, we don't mind if you take your time with other test projects first; the more homebrew and homebrew developers a system gets, the better, so just do the best you can, and take it slowly.