According to a recent report on website Spong, development on Bayonetta 2 has been cancelled by SEGA. They report that “Bayonetta 2 has been cancelled, following the publisher’s ongoing restructure.”
While developer Platinum Games never officially announced the game, it’s hard to ascertain just how far in development the game was. The sequel was apparently going to include a new character, in the form of a member of the US military. Based on that information, the game was at least in the planning stage.
Sega’s response to the rumor was a resoundingly firm “No comment.”
(Via Shop to News)