Thats what the speculations are going about after Ninja Theory gave their homepage a total makeover:

"Right now we're working on an exciting new concept that has got everyone we talk to buzzing. We can't say a lot except that it's going to be great to work on and should be even better to play! It'll take all the things we loved about Heavenly Sword and make them bigger and better than ever before."

http://www.ninjatheory.com/about.php

http://www.ninjatheory.com/contacts.php

(all hints collected together in one post)

http://www.neogaf.com/forum/showpost.php?p=9826665&postcount=29

Check it out. Looks interesting.

Interesting. Are Ninja Theory currently working on any other IP's? If not they must be working on a HS sequel at the moment.

Perhaps a 09' release? It could face stiff competiton from GOW III, if that were the case.

Well HS 2 would be nice :).

From the graphics shown it seems a new IP and not Heavenly Sword sequel .

I actually just took a look at the screens there. It appears to be a sort of futuristic/machine world setting.

Yet this quote: "It'll take all the things we loved about Heavenly Sword and make them bigger and better than ever before." would lead you to believe it's actually a HS sequel.

Perhaps he means that they'll take all the design elements of HS that they liked and incorporate them into the new game.

It's all just speculation at this point really...

Mmmm I don't care what it is! I want it! I ADORE heavenly sword :D Those guys really know how to make a game ^_^

As long as the game is longer than HS and keeps the great graphics and concept then i will be happy to pick this up :D

If they make it longer than the last game , than it will deffinatly be a million seller :D

Cool, and maybe this one will be a little longer?
The game is fantastic, but its a tad on the short side, much like CoD4.
Good content is fun, but too little good content leaves one wanting more...

I'm assuming it will be a spiritual successor of some sort. Assuming the concept art relates to the game, and isn't intended to throw us off (:P), then it's safe to say their new IP will be set in a futuristic setting.

Either way, I'm really excited. Heavenly Sword was Ninja Theory's first major title, and considering what they did with it, I have high hopes for their next work.