According to Eurogamer, the all-singing, all-dancing Space Channel 5 Part 2 will arrive on Xbox Live Arcade and PlayStation Network in "early 2011," alongside the aforementioned aquatic catch-em-up. Interestingly, Sega has never published Space Channel 5 Part 2 in North America. The Dreamcast version never made it out of Japan, and a PlayStation 2 port -- bundled with the first game as Space Channel 5: Special Edition -- was released in America by Agetec.
Overseen by Rez and Child of Eden designer Tesuya Mizuguchi, Space Channel 5 was unique in melding a goofy story with rote rhythm-based mechanics. Part 2 ditched the first game's pre-rendered video backdrops and added instrument battles, impromptu singing showdowns and expanded on the original's catchy, Austin-Powers-in-space music.
Update: Screens and art added below.