The sequel to Platinum Games’ wild beat’em up Bayonetta was in development - as far back as August 2011, creator Hideki Kamiya promised “information” about it - but it seems that Sega’s internal restructuring as doomed the game.
Some details were leaked about Bayonetta 2, which was purportedly in pre-production, such as a new main character who was allegedly a member of the US military.
Sega has seen a major financial loss in the past year, and with Bayonetta’s poor sales despite a cult following, the company has probably reconsidered moving ahead with the project.
Platinum Games as a whole hasn’t been releasing blockbuster games as of late, with such financial flops as Vanquish and MadWorld. Its next game is Anarchy Reigns (aka Max Anarchy).