It was recently revealed that the adventures of Alan Wake would continue in an XBLA downloadable game, titled Alan Wake's American Nightmare. This standalone game sees Alan Wake chasing his evil doppelganger, Mr. Scratch. The game is due out in Q1 2012 and we have the newly released extended trailer, screenshots, and information on the "Fight till Dawn" arcade mode:

"The main story mode in Alan Wake’s American Nightmare is part of the ‘Night Springs’ TV show fiction and offers an exaggerated pulp action adventure where the horrors of reality have the all too easy habit of coming true. Alan Wake finds himself stuck in an altered reality filled with dangerous shadows; he must leap into action and pursue his evil doppelganger, Mr. Scratch, across the Arizona mesa towards the town of Night Springs. Scratch, a supernatural serial killer, has his evil plans set on Wake’s wife, Alice. Wake must learn to control reality itself and unravel the secret to Mr. Scratch’s demise while using the power of light to put an end to the darkness.

The previously unannounced 'Fight till Dawn' arcade mode places Wake in the battle of his life. Players must survive a full night of enemy onslaughts while racking up their score. With loads of new enemies to battle, players will require a deep arsenal of weapons; from old stalwarts like the flare gun to wild new favorites like the nail gun and old school Remedy favorites like the Uzi. Thankfully, safe havens and unlockable weapons dot the landscape, allowing for a momentary respite from the darkest of nights. Surviving until dawn is only the beginning as online leaderboards pit friends head to head to see who the real champion of light is."