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Personally I really liked Red Steel, except the sword fighting got really annoying later in the game (for me). If the swordfighting is improved and nothing else, that's still a day one purchase for me.

However, I do expect the IR controls to be much tighter, motion utilized more intelligently (although I liked waggling to pick up guns/open doors/etc) and the entire game to be more flushed out and have online multiplayer (sword only levels please!) plus split-screen like the first one. Co-op would also be great.