Vanillaware provided some additional information and clarification on what they are doing with Odin Sphere for this HD update. They are actually making both versions of the game available to players. When it ships, there will be a HD version of the original game with no other changes and then an update/remake with all of the changes and the HD visuals as a separate game.
Source: Odin Sphere: Leifdrasir Will Include A Remake And Also The Original Version In HD - Siliconera
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