I honestly think the redesigns for the sub-universe is supposed to be aimed at the 10-14 age demographic, as I instantly thought of Final Fantasy VII characters with the get up.
Knuckles = Barret, Sonic = KH Cloud, Tails = Cid and Amy = Aerith.
Not sure if that would appeal to the west these days as the whole belts, bandages and overtones on clothing was unpopular for 10 years now.
Either way, hoping the game is good.