No, this story did not catch my eye just because it was Sega. However, it IS Sega, and they are developing a new arcade game. No, you won't play it with a joystick or some buttons or a dance pad or anything like that. You'll control it with Legos. Block Pipo by Sega looks like it will be controller by stacking blocks up in front of the screen and getting your character to climb up said blocks. It looks like it could be very interesting. They can at least get props for coming up with an original arcade game.
There aren't too many details yet (In English anyway), but this game is scheduled to be released to arcades in Japan this summer. It's also set to make its first appearance at AOU 2009.
Story by Siliconera. Full story available here