-------UPDATE: October 6th 2016--------

"If you've been waiting for news about BG&E... well, here you go! We are delighted to confirm that Michel Ancel is currently working with the Ubisoft Montpellier Studio on a new Beyond Good & Evil game." - Beyond Good & Evil Facebook page. There's also been a couple of game model images posted on Ancel's instagram. Also I think there have been rumors that Nintendo is funding the game, though I'm not sure how much you could trust those. Might make sense considering that Nintendo doesn't have a lot of time left to talk about the NX and now this is being announced. Actually, I just checked and the initial rumor was posted on Destructoid. Ubisoft asked them to remove the article with the rumor, so I think there's something to it.

-------UPDATE: January 29th 2016--------

Well this story somehow keeps developing. Ancel himself confirmed that he's working on the game after playing the original Beyond Good & Evil with Schafer in the video below. The video will start around the end, with them summing up their feelings on the game and Ancel confirming he's working on the next one. He doesn't sound particularly confident about it.

-------UPDATE: June 26th 2015--------

PS4 France just published an article where they claim a reliable informant (who told them about the ZombiU ports) was part of a Beyond Good and Evil 2 play test. The article is written in French. Here's the google translate version where the supposed leaker gives his description of what happened during the demo.

Been here before with Last Guardian, although this is likely a more fragile situation. Still, I pretty much gave up hope on this being a thing. Another confirmation would get me back on the train.

-------Original Post--------

Says Ubisoft CEO Yves Guillemot.

"I don't give comments anymore on BG&E2," Guillemot said, "because I think ... the next time next time we communicate we have to have something new." Not specific to the PS4 or any other platform, he told me: "It's coming."

Source

Well thats awesome the me from like 10 years ago is pretty excited about this.

That leaked video from a while back was pretty amazing from an animation point of view. It was just striking to see a character react to the world in such a responsive way. That said i think it was just a target render so it probably bears little resemblance to the final product other than the overarching vision they have.

Jesus this game has been in development now for a fucking millennia.

Only good things come from long development cycles.

Like Half Life 3 and Persona 5, tell me when it's out.

I'm gonna go out on a limb and say if it ever comes out, it's going to be a long time from now.

@humanity said:

I c wut u did thar. :)

Wait. I should be sad.

:(

This game and Dreamfall Chapters are the 2 games I'm most excited for, grrrr I hope it appears at E3 this year.

I think now is about the time I should play the original Beyond Good and Evil to see if this sequel is warranted in any way.

I really doubt its been in actual development for all that long. Its fairly easy to drum up a concept video to sell an idea on what they want to do and I'm sure that's all the leaked video was

I have a feeling this is going to be one of those games that people fawned over the idea of for years and it will finally get released sometime in the future then everyone will be dissapointed and it will end up not being very noteworthy. Just seems how these protracted development cycles usually work. Sleeping Dogs is one of the few games of this ilk that somehow made it out alive.

Updated the OP with some new info.

@aegon: I will continue to consider BG&E2 a dead game until proven otherwise.

This is a necro I can get behind ;)

It would make some sense for them to go back to it finally- given that it would be something new for them to try that has some sense of nostalgia behind it (I know they released one before, but only one and it was a long time ago so it would be fresh now).

I don't put much stock in leaks (because even if they're true they don't take into account the myriad of reasons it may still not work out), but I do like the idea of another one of these games. The first game did some great stuff, and that soundtrack is unforgettable. I do feel like there is still more stuff they could do with that series as well. It's probably the only game where there is a significant picture taking mechanic that I genuinely enjoyed all aspects of to completion. I remember doing everything in that game at the time it came out.

I look forward to climbing towers as Jade.

Meh, I'll believe it when I see it.

Once again an update.

I should maybe at some point play the original.

This game is becoming more of a joke then Duke Nukem Forever was.

I wouldn't say that the game is super amazing. It's just that it's a really cool game with a nice atmosphere and its own flavour. It doesn't really have a replacement in the industry.

Not even close. Not yet, at least.

It's half way there as they've been saying this line since 2008.

The saga continues.

That's a really good way of putting it. I remember the game very fondly.
There's a lot of ways I can see myself enjoying a second one but it's hard to tell what direction they intend to take it with this little information. Wait and see.

Cool, thanks for the heads up. I'll e-mail myself from 2005 and spread the good news.

"It's time to take pics or chew bubble gum, and i'm all out of bubble gum"

I never understood the problem, the game got an awesome universe and it ended with a cliffhanger, shouldn't be that hard to continue where they left off ....

However, that's also the case with many other games such as Half life, I don't really understand what's going on inside these developers head....

Looking forward to seeing this game revealed at E3 2019.

I don't even want a sequel at this point.

I've actually given up on a sequel ever coming out. At this point, it won't be any good. It can't live up to the anticipation and excitement that has been there.

Now, if Ubisoft were to commission a Beyond Good & Evil movie that remained true to the spirit of the game, I would be totally cool with that. I think a BG&E movie would be pretty great...so long as it's done properly, ya know.

Update #3: The official announcement.

On the Beyond Good & Evil Facebook page, it was mentioned today that “Michel Ancel is currently working with the Ubisoft Montpellier Studio on a new Beyond Good & Evil game.”

I request a GB Endurance Run™ of the first game once this announcement is further solidified but before it comes out. So that people who haven't played it can get an idea of the original's strengths and weaknesses, and also for people like me who don't really remember what happened in the end cause it was a long time ago.

Wow. I had really started assuming this thing was dead and never going to happen.