Dean Takahashi over at The Mercury News is reporting that he spoke with someone who saw actual development code and that BioWare is indeed working on Jade Empire 2. Shock, gasp and awe! Takahashi is nearly positive that a sequel to the 2005 release of Jade Empire is in the works and is currently set to be released as an Xbox 360 exclusive. Though, he mentions that it is entirely possible that the Empire will make its way to the PS3 seeing that EA has complete control of the BioWare reins now.
Here's to hoping this rumor turns out materializing as we (and nearly everyone else) wouldn't mind seeing a Jade Empire sequel. Keep bringing the RPG goods BioWare.