Bayonetta was something of a sleeper hit, impressing a huge amount of people who played it (so long as they weren't affected by PS3 issues) and creating a sexy, strong character who has nigh on become iconic. There still hasn't been a sequel, although rumours have spread around more than once.
Hideki Kamiya of Platinum Games has said that the future of the series might be on handheld consoles, rather than on PS3 or 360. Current thinking, he said, was that the game would star Jeanne in her role as a teacher at the Umbra Witches Academy and that the game would feature both the over-the-top action well-loved by Bayonetta fans and RTS elements.
There's also a chance that Devil May Cry's Dante would make an appearance as a boss, although obviously that depends entirely on Capcom. All of this should be taken with a pinch of salt, however, because it's fairly obvious the game is yet to be far into development, if it's being worked on at all, and so you should expect a while of further teasing before we get anything concrete.
