Sega's confirmed that Sonic 4: Episode II has now entered into the early stages of development.
Speaking in a thread on the Sega forums, Sonic 4 brand manager Ken Balough have dropped a couple of tidbits of info so far, like Sega of America and Sega of Europe are collaborating with each on the game.
Episode 1 also did well enough commercially for the company, according to Balough, adding it now knows how many episodes it's going to do of Sonic 4. He wouldn't specify how many, though.
Balough also admits that some elements of Episode 1 could have been better, but Episode 2 will respond to these issues.
There's more over on SonicStadium.
Sonic 4: Episode 1 released last October for PSN, XBLA and WiiWare.