According to this JeuxVideo story, Michel Ancel has apparently confirmed that Beyond Good & Evil 2 has been in production for the past year, but Ubisoft isn’t decided on whether or not to move into a production phase.
The story says that between 10-12 people are working on the game.
Don’t blame us if some of this is lost in translation.
Beyond Good & Evil was probably the most criminally ignored videogame in living memory, a genre-busting adventure involving political intrigue, photo-journalism and a hovercraft. Please, in the names of all the baby Jesuses, make this game.