I know this is going to sadden a number of folks but it looks like a Bayonetta sequel will not be happening. According to SPOnG, Platinum Games were at least in the pre-development stages of the proposed sequel, supposedly drawing up concepts for a new lead character who would be a member of the US military. While fans will be happy to know that things eventually didn't go down that path they will be disheartened that the game won't be happening in any capacity.
The ongoing talks are that SEGA pulled the plug on the game's development due to restructuring within the company, something widely reported on a month ago since they apparently are shutting down work on a number of games in the middle of development in favor of properties more likely to bring in profitable returns.
Bayonetta was one interesting title, one that definitely gave nods to such titles as Devil May Cry, Okami, and even Resident Evil. And no wonder since its designer and director Hideki Kamiya was the original director of the original Devil May Cry, Viewtiful Joe, and even Okami. It took everything that was great about DMC (nope, not the new one being made by Ninja Theory) and took it to absurd levels. I mean, where else are you going to see a woman use her hair to destroy all enemies in her path?