Ubisoft has confirmed the sequel of Red Steel... Update! Just not officially...

In Cannes, Ubisoft has mentioned that they are developing Red Steel 2 for Wii. They are reworking the sword combat system and an online mode is rumored, but not confirmed.

Ubisoft's title was one of the first FPS for Wii and the first game shown for the console. It was set in Japan and featured motion controlled sword fighting. Stay tuned for more as it breaks.

Update: Ubisoft Paris have claimed that Red Steel 2 was not officially announced at the event. It does, however, seem very likely that the game is in the works, and that Ubisoft wants to wait until later in the year to (E3 for example) to announce it officially.