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Alan Wake sequel in the works–possibly for the next Xbox

It’s kind of a good news, bad news thing for fans of Remedy Entertainment’s Xbox 360 exclusive, Alan Wake. The good news is that a sequel is in the works. That shouldn’t come as too big a shock though. The game received high critical praise, sold decently and Remedy stated that it saw the first game as the first season of a much larger story.

But here’s the rub: According to a new report from CVG—which must still be considered as a rumor for now—the Alan Wake 2 is being developed for the next generation of Xbox.

And it isn’t alone. According to an “insider,” several developers have teams working on games for the next Xbox. Along with Remedy, the article specifically identifies Lionhead, developer of the Fable games, and Turn 10, developer of the Forza Motorsports games. Both developers have games on the way for the 360—Fable 4 is rumored for 2013 and a Kinect-only Fable title is due in 2012, while Forza Motorsports 4 debuts next week. But beyond that, both developers may join Remedy in closing down development on the 360 in favor of the next Xbox.

That doesn’t mean that the Xbox 360 is dead, and the next generation of both the Xbox and PlayStation may still be several years off. And even if they are unveiled sooner than anyone thinks, that doesn’t mean development on the current generation will suddenly conclude, far from it.

But it if the rumors are true, it seems likely that developers that have attached themselves to the Xbox, and are producing Xbox exclusives, may go dark as they quietly begin preparation on what could be the launch titles for the next generation of Xbox.