Shovel Knight, which won the award for Best Independent Game at last night’s Video Game Awards, has been announced to be gracing the PS4, PS3, and the Vita in 2014.
— Yacht Club Games (@YachtClubGames) December 6, 2014
Yes, you are seeing that correctly. Kratos will in fact be in the game. From the look of the trailer (which you can watch below), Kratos will be a boss character.