Rockstar controversial action-adventure Bully had a sequel in development but the developer decided to cancel the game in 2017 and focus on Red Dead Redemption 2 and GTA VI instead.
Rumours about a Bully sequel have been floating around the social media and gaming forums for several years now but unfortunately, Rockstar never really even teased the development of another Bully game.
We know that Rockstar are currently focused on Red Dead Online and GTA Online as well as GTA VI game, which is yet to be officially announced but it would be really surprised if the game is not well underway by now, since we already got some leaks about the setting, location, story and the map.
Anyway, according to the latest info from an insider of GTA forums, Bully 2 game was indeed in development but sadly, got cancelled at least two times. In a post , which you can find here, Tez2 claims that the game was in pre-production back in 2015. The full development kicked off in 2016 or 2017, apparently, but the pace slowed down since Rockstar wanted to focus on Red Dead Redemption 2.
The game was then completely cancelled in 2017 due to Grand Theft Auto VI development. Here's the full post:
"My guess is it was still in pre-production back in 2015, so development probably didn't kick off until 2016 or 2017, but shortly after that, the pace slowed down due to RDR2 increased focus and Bully 2. The latter was canned in 2017, so I presume they did that to focus on GTAVI."
As always with rumours and unconfirmed info, take this with a dose of scepticism since it's not coming from a solid source.