It's a bit anti-climatic at this point but today developer CD Projekt finally and officially announced they were indeed developing The Witcher 2. The sequel to their hit fantasy RPG is currently scheduled for release in the first quarter of 2011. The developer has already admitted it was working on the game after a video showing the game's development leaked on the net several months ago.
The press release reveals that The Witcher 2 has already signed a number of publishing agreements including Atari for the North American market. The press release hypes up the sequel's new graphics engine which CD Projekt developed from scratch this time (the original Witcher game used BioWare's Aurora engine as its basis), The first English preview of the game can be read at GameSpot (be aware there are some story spoilers in the preview).