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I just don't see where they can take ARMS from what it is now, and propel it forward in a meaningful way that deserves a sequel.  To me, it's a one off idea that worked relatively well and people got some enjoyment out of it.  Ultimately, though, what can they do better with a sequel VS just bringing out some additional content from time to time to keep the existing game from going totally stagnant.  I suppose they could wait a couple more years and do a remake for the next gen system.