Sega's sexy heroine is unlikely to see a sequel anytime soon.
When you think about it, it's odd that Bayonetta had absolutely no trouble trouncing the creator of the universe, but she now finds herself brought low by a videogame publisher. The leggy witch put on a strong show in 2010's Bayonetta, but even a critical success with respectable sales can't guarantee a sequel in Sega's current sea of financial troubles. There is no clear consensus between Sega and developer Platinum Games, but development seems to have halted on Bayonetta 2, leaving the heroine's next adventure stalled.
Based on information from a source familiar with Sega's internal workings, Bayonetta 2 appears to have been in a relatively early stage of preproduction. Due to its finances being cursed by an Umbra witch, Sega had to drop a number of employees and game projects recently. Platinum Games, Bayonetta's developer, does not deliver the mega-hits Sega needs to stay afloat right now, and the stylish action sequel likely got caught in the crossfire. Bayonetta 2 may eventually see the light of day; however, don't expect Sega to invest in any major project that can't promise major financial success anytime soon.
Sega is still letting some quirky smaller titles through to release, but Bayonetta 2's cancellation seems like a reasonable conclusion. In addition to a noncommittal "No comment" from Sega, the franchise would require a ton of resources and appeal to a niche audience. While it would probably make back its investment and a small profit, the drain on Sega's resources until the game's completion might be too much of a financial burden during already difficult times. It just goes to show that sometimes the almighty dollar can be an even more fearsome enemy than all the angels, witches, and corrupt clergymen in Europe.