Destructoid reports that UbiSoft has announced that they are making Red steel 2. Ubisoft is reportedly justifying making the second game by saying that they're completely reworking the sword system. There's no announcement yet as to whether or not the game will support online play or anything, but there should be more details rolling out soon.

I believe I'm the staff member who has played the most of Red Steel (~70% of the game), I actually do want to see how much of an overhaul they can give this game, and possibly turn it into something worthwhile. They really need to take their time and pull out all the stops on this, otherwise UbiSoft will be losing tons of fans for wasting money on this. Apart from the sword system, which can get mind-numbingly boring, they need to make sure the horrible rubber-arm graphics and still-shot cutscenes are done with.

WTF. At least they're trying to improve Red Steel's gameplay. But how much improvement can they make on the sword system, not to mention the graphics?