Firefly has a jumped on the Action RPG bandwagon and is currently developing Dungeon Hero, which is their attempt at redefining what the genre is about. They consciously strayed away from the mindless clicking that plagues action rpgs (I'm looking at you Diablo 2!) and are moving toward a contextual combat system. Inspired by assassin's Creed perhaps?

It's not often you feel sorry for those goblins down in the dungeons. In most other action-RPGs, the baddies are milling around with little purpose, staring at walls, or simply standing still. In Dungeon Hero, developer FireFly is making strides to give more personality, more humanity, if you will, to a city of underground goblins. We didn't actually get to play the game, and saw very little of the game in action, mostly because the game is set to release in early 2009 for Xbox 360 and PC. We did get a good sense of the ideas whirring behind the game, and they sound pretty interesting, mostly because it sounds like they're putting a focus on the story and character of the game, not just item acquisition and gathering experience.

Dungeon Hero is slated for early 2009.

via IGN

Dungeon Hero provides players with a fresh take on the classic dungeon based game. The in-game world is a totally functional, living, breathing community in every way. Eat, sleep, chat, socialize, trade and travel as you would in any civilized place - after all dungeon creatures are people too! Fierce adrenaline pumping close quarters combat against a multitude of enemies drives the player deep into their heroic role. The battle system is intense with savage encounters that will leave enemies wondering where they went wrong. Dark times call for one to stand against many, will you be the one strong enough to become the Hero of the Dungeon?