Red Steel 2 apparently is in the works.

By Stephen Munn | November 29, 2006

Red Steel was the second hottest selling title at the Wii launch, perhaps mainly because Twilight Princess was in shorter supply than the system itself. Ubisoft, it seems, noticed, and has posted for a senior game designer on their website. This could be a good sign. Maybe the new designer will help make the sequel something worth buying, unlike the original.

There is mention in the posting of RPG elements and online play.

Via The Wiire.