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A sequel to the excellent parkour action adventure Sunset Overdrive was in development at Insomniac Games in 2016, according to the slides that surfaced online following the massive ransomware attack on Sony's first-party studio.
The game was in development for a year before it was seemingly cancelled in late 2017. The slide does not mention why exactly Insomniac cancelled the project but if we had to guess, we'd say that the development of Marvel's Spider-Man probably had something to do with it.
It was a pretty massive project for Insomniac so they probably decided it's for the best to focus on the PlayStation exclusive.
Shortly after the release of Marvel's Spider-Man on PlayStation 4, Insomniac Games joined PlayStation so at that point, any talk about Sunset Overdrive 2 was probably out of the question since Microsoft own the publishing rights for the game.
Back in 2017, Insomniac Games stated that it was up to Microsoft to give the green light for a sequel. However, more recently, the studio revealed that there are no obstacles stopping them from making another Sunset Overdrive game as they are the owners of the IP.
Whether such a project ever comes to fruition, it remains to be seen. We certainly would not get our hopes up as Insomniac will be quite busy building various Marvel games in the coming years, including Wolverine, the third Spider-Man game and even more as revealed in the leaks.
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